AN EMPIRICAL STUDY OF E-BANKING IN CAMEROON
Transcript of AN EMPIRICAL STUDY OF E-BANKING IN CAMEROON
i
AN EMPIRICAL STUDY OF E-BANKING IN CAMEROON
By
JACQUES HERVE NGUETSOP TALLA
Submitted in accordance with the requirements
for the degree of
MASTER OF COMMERCE
in the subject
BUSINESS MANAGEMENT
at the
UNIVERSTY OF SOUTH AFRICA
SUPERVISOR: PROF D Makina
CO-SUPERVISOR: PROF D Kamdem
JUNE 2013
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DECLARATION
I declare that An Empirical Study Of E-banking In Cameroon is my own
work and that all the sources that I have used or quoted have been indicated
and acknowledged by means of complete references.
…………………………………………
Jacques Herve Nguetsop Talla
STUDENT No. 49126954
DATE
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ACKNOWLEDGEMENTS
I am deeply grateful to many people, who have gone out of their way to
donate time, energy and effort to make this research a reality. I am especially
indebted to The Lord Almighty who has made this study a success. I thank
my supervisor Prof Daniel Makina and co-supervisor Prof David Kamdem.
They trained me on how to ask questions and express my ideas. They
showed me different ways to approach a research problem and the need to
be persistent in order to accomplish any goal. They taught me how to work
hard. I would also like to thank Prof Makina l for his support and patience, as I
encountered a number of personal difficulties while preparing this
dissertation. He was always there to listen and give advice. Similarly, special
thanks are due to Mrs.Mbulayeni without whom I may never have had the
opportunity to enrol for this Master’s Degree, and to UNISA’s Financial Aid
bureau for their financial support.
Last, but not least, I thank my family: my parents, Tatsi Talla Jean and Tatsi
Nguetsop Juliette for giving me life in the first place, for educating, support
and encouragement to pursue my interests. My Fiance Gaelle Esperance, my
sisters and brothers, Bruno, Sidonie, Rodrigue, Sylvain, Rostow, Donald,
Edith, Flora, Romain and Olivier. I will not forget my friends Elie Kogoup,
Willy Chenkep, Crystelle Mboumen, Emilie Djoumessi, Oscar Balep, Etienne
Le tchindjio, Cyrille Mbangzieu, Stephane Ouakam, Cyrille Ngnechie,
Narcisse Zebaze, Ngandeu Jean-Yves, the whole Family Nguetsop and
others who were always there for me.
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DEDICATION
This dissertation is dedicated to my parents and to my fiancé
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ABSTRACT
The objective of this study was to determine the factors which can affect the
adoption of e-banking in Cameroon. To conduct that research, we tried to
understand how demographic characteristics, attitudes and social influences
impact on the customer’s decision to adopt e-banking; to investigate barriers
and challenges with regard to the adoption of e-banking; to identify the
differences in perception regarding e-banking between e-banking users and
non-users; and to determine whether or not e-banking offers more
opportunities in comparison with the traditional banking system used in
Cameroon.
Through an in-depth interview and questionnaires filled by bank’s customer,
the factors influencing the adoption of e-banking in Cameroon were identified.
These were demographic factors such as age, income, educational level and
occupation. Psychological factors such as perceptions of relative advantage,
compatibility, complexity and perceived cost were also identified. Perceived
risk was found to have a negative impact on e-banking adoption. A measure
of the relationship between the factors and the adoption of e-banking was
determined. Negative perceptions and attitudes influence the decision-
making process, resulting in negative consumer behaviour outcomes. Social
influences, including the opinions of friends, parents and colleagues, were
found to have an influence on e-banking adoption. With regard to the
research objectives that identified factors discouraging customers from using
e-banking, the lack of trust, lack of information, lack of knowledge and
perceived risk by non-users hindered the adoption of e-banking. Challenges
and barriers with regard to e-banking adoption were also identified, namely
resistance to change by bank employees, lack of knowledge, absence of e-
laws and legislation for e-banking, absence of a proper telecommunications
infrastructure and shortage of IT training. This research is especially valuable
for the Cameroon banking industry, as the findings will provide insights for
banks interested in implementing e-banking strategies.
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TABLE OF CONTENTS:
DECLARATION i
ACKNOWLEDGEMENT ii
DEDICATION iv
ABSTRACT v
TABLE OF CONTENTS vi
LIST OF FIGURES vii
LIST OF TABLES x
APPENDICES xiv
LIST OF ABBREVIATIONS xx
CHAPTER 1: INTRODUCTION 1
1.1 Introduction 1
1.2 Background to the study 2
1.2.1 E-banking 3
1.2.2 E-banking in developing countries 4
1.3 Overview of the banking system in Cameroon 7
1.4 Problem statement 13
1.5 Objectives of the study 14
1.6 Significance of the study and research method 15
1.7 Limitations of the study 16
1.8 Chapter outline 16
CHAPTER 2: LITERATURE REVIEW 18
2.1 Introduction 18
2.2 Theories 18
2.2.1 Technology Acceptance Model 21
2.2.2 Theory of planned behaviour and innovative diffusion theory 24
2.2.2.1 Relative Advantages 32
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2.2.2.2 Compatibility 33
2.2.2.3 Complexity 34
2.2.2.4 Perceived cost 36
2.2.2.5 Perceived risk 36
2.2.2.6 Demographic characteristics 37
2.2.2.7 Social Influences 40
2.3 The evolution of e-banking 41
2.3.1 History of e-banking 42
2.3.2 E-banking technology 43
2.3.3 E-banking security 45
2.3.4 E-banking advantages and disadvantages 47
2.3.5 E-banking challenges and barriers 49
2.3.6 E-banking around the world 51
2.4 Summary 59
CHAPTER 3: RESEARCH DESIGN AND METHODOLOGY 62
3.1 Introduction 62
3.2 Research design 62
3.2.1 Qualitative research 64
3.2.2 Exploratory research 65
3.2.3 Descriptive research 66
3.3 Research methodology 66
3.4 Secondary data collection 67
3.5 Primary research 68
3.6 Questionnaire Design 68
3.6.1 Questionnaire translation 70
3.6.2 Negotiation for entry into the community 71
3.6.3 Ethical considerations 72
3.6.4 Questionnaire pretesting 73
3.6.5 Population and population size 74
3.6.6 Sample 76
3.6.7 Sample design 76
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3.6.8 Sampling technique 77
3.6.9 Sample size 78
3.6 Data analysis 81
3.7 The role of the researcher 81
3.8 Validity and reliability 82
3.9 Limitations during the study 83
3.10 Summary 84
CHAPTER 4: DATA ANALYSIS AND DISCUSSION OF FINDINGS 85
4.1 Introduction 85
4.2 Findings from the managers’ interview 85
4.2.1 Managerial and organisational factors 88
4.2.2 Technological issues 91
4.3 Findings from the customers’ questionnaires 92
4.3.1 Descriptive analysis of demographic characteristics 93
4.3.2 Analysis of responses 106
4.3.3 Electronic banking usage 108
4.3.4 Perception of e-banking 112
4.6 Hypothesis testing using non-parametric tests 123
4.7 Conclusion 147
CHAPTER 5: CONCLUSION AND RECOMMENDATIONS 151
5.1 Introduction 148
5.2 Summary of findings 148
5.3 Recommendations 153
5.4 Areas for future research 154
REFERENCES 156
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LIST OF FIGURES
Figure 2.1:
Figure 2.2:
Figure 2.3:
Figure 2.4:
Figure 4.1:
Figure 4.2:
Figure 4.3:
Figure 4.4:
Figure 4.5:
Figure 4.6:
Figure 4.7:
Figure 4.8:
Figure 4.9:
Figure4.10:
Figure4.11:
Figure4.12:
Figure4.13:
Figure4.14:
Figure4.15:
Figure4.16:
Figure4.17:
Figure4.18:
Figure4.19:
Key factors in consumer adoption of IB: a generic theoretical
framework
Conceptual Model Extending the Classical TAM with Image,
Security, Computer Self-Efficacy and Convenience
Research framework for the adoption of Internet banking
services
The steps taken by banks in their effort to increase
accessibility
Gender of respondents
Gender of e-banking users and non-users
Age of respondents
Age of e-banking users and non-users
Level of education of respondents
Responses of users and non-users of e-banking according
to level of education
Responses of users and non-users of e-banking according
to level of education
Distribution of respondents’ incomes
Distribution of users and non-users of e-banking by income
Occupation of respondents
Distribution of users and non-users according to occupation
Distribution of users and non-users according to occupation
(workers)
Computer usage
Respondents’ use of the Internet
Internet usage frequencies
Possession rate of mobile phones
Percentage of respondents knowing e-banking
Percentage of e-banking users
E-banking usage frequencies
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23
27
30
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Figure4.20:
Figure4.21:
Figure4.22:
Figure4.23:
Figure4.24:
Figure4.25:
Figure 4.26
Figure4.27:
Figure4.28:
Figure4.29:
Figure 4.30:
E-banking saves time
E-banking is better than branch banking
E-banking suits your lifestyle
E-banking makes life more convenient
E-banking is very easy to use
The Internet is very cheap
E-banking is cheap
E-banking is very safe
Banking at the branch is safer than via the Internet
Family influence on the decision to adopt e-banking
Friends and colleagues’ influence on the decision to adopt e-
banking
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LIST OF TABLES
Table 1.1: The trends towards using and owning a technology 10
Table 3.1: Bank environment in Cameroon 75
Table 3.2: Bank sample of the study 78
Table 3.3: Other questions asked to managers during the
interview
80
Table 4.1: Responses collected from the banks
86
Table 4.2: Demographic characteristics of respondents
87
Table 4.3: Responses collected from the banks
92
Table 4.4: Place where they learn how to use a computer
103
Table 4.5: Place where respondents use the Internet
104
Table 4.6: Source of knowledge on e-banking
107
Table 4.7: Usage of different e-banking services 108
Table 4.8: Factors hindering the use of e-banking 110
Table 4.9: Factors encouraging the use of e-banking
111
Table4.10 Cross-tabulation Chi-Square test – relationship
between gender and the use of e-banking.
124
Table 4.11 Chi-Square Test – relationship between gender and
the use of Internet banking
124
Table 4.12: Age and the use of e-banking: cross-tabulation
127
Table 4.13: Chi-Square Tests: relationship between age and the
use of Internet banking
128
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Table 4.14: Income and the use of e-banking: cross-tabulation
129
Table 4.15: Chi-Square Tests: relationship between income and
the use of Internet banking
130
Table 4.16: Educational level and the use of e-banking: cross-
tabulation
132
Table 4.17: Chi-Square Tests: relationship between educational
level and adoption of e-banking
133
Table 4.18: Occupation and the use of e-banking:- cross-
tabulation
134
Table 4.19: Chi-Square Test: relationship between occupation
and adoption of e-banking
135
Table 4.20: Comparison of mean values of users and non-users
with regard to their perception that e-banking is
time-saving
136
Table 4.21: Comparison of mean values of users and non-users
with regard to their perception that e-banking is
better than branch banking
137
Table 4.22: Comparison of mean values of users and non-users
with regard to their perceptions of whether or not e-
banking suits their lifestyle
138
Table 4.23: Comparison of mean values of users and non-users
with regard to their perception that e-banking is
convenient
139
Table 4.24: Comparison of mean values of users and non-users
with regard to their perception that e-banking is very
easy to use
140
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Table 4.25: Comparison of mean values of users and non-users
with regard to their perception that the use of the
Internet is very cheap
141
Table 4.26: Comparison of mean values of users and non-users
with regard to their perception that e-banking is very
cheap
142
Table 4.27: Comparison of mean values of users and non-users
with regard to their perceptions of branch banking
and Internet banking
143
Table 4.28: Comparison of mean values of users and non-users
with regard to their perception that e-banking is very
safe
144
Table 4.29: Comparison of mean values of users and non-
users with regard to their perception that the
decision to adopt e-banking is influenced by the
family
145
Table 4.30: Comparison of mean values of users and non-users
with regard to their perception that the decision to
adopt e-banking is influenced by colleagues and
friends
146
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APPENDICES
Appendix A: Questionnaires for data collection 186
Appendix B: Bank branches in Cameroon 209
Appendix C: Frequencies of data collected 210
Appendix D Request for entry into the area of research:
English and 217
French version 218
Appendix E: Ethical clearance 219
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LIST OF ABBREVIATIONS AND ACRONYMS:
ABSA
ATM’s
BCEAC
BEAC
BIAO
BICIC
CBC
CEMAC
CFA
CFCA
COBAC
EC
EDI
EFT
FNB
GDP
IB
ICT
IDIs
IDT
IS
ISP
IT
NFCB
NIS
PCB
PIU
PLA
PRA
POS
SCB
Amalgamated Banks of South Africa
Automated Teller Machines
Banque Centrale des Etats de l’Afrique Centrale
Banque des Etats de l’Afrique Central
Banque Internationale pour l'Afrique Occidentale
Banque Internationale du Commerce et de l'Industrie du Cameroun
Commercial Bank of Cameroon
Communauté Économique et Monétaire de l'Afrique Centrale
Chartered Financial Analyst
China Financial Certification Authority
Central Ohio Bicycle Advocacy Coalition
Electronic Commerce
Electronic Data Interchange
Electronic Fund Transfer
First National Bank
Gross Domestic Product
Internet Banking
Information and Communications Technology
In Depth Interviews
Innovative Diffusion Theory
Information System
Internet Service Provider
Information Technology
National First Credit Bank
National Institute of Statistics
Personal Computer Banking
Performance and Innovation Unit
Participatory Learning Appraisal
Participatory Rural Appraisal
Point of Sales
Société Camerounaise des Banques
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SGBC
SME
SMS
SPNS
SWIFT
TAM
TPB
TRA
UAE
UBA
UBC
USB
Société General des Banques du Cameroon
Small Medium Enterprises
Short Message Service
Share Payment Network System
Society for Worldwide Interbank Financial Telecommunication
Theory of Acceptance Model
Theory of Planned Behaviour
Theory of Reasoned Action
United Arab Emirates
United Bank of Africa
Union Bank of Cameroon
Universal Serial Bus
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CHAPTER. 1. INTRODUCTION
1.1 Introduction
Advances in electronic services technology have created many opportunities,
as well as threats, for various business and service sectors. Organisations,
either willingly or unwillingly, are increasingly embracing the Internet as a
distribution channel, in order to remain competitive or gain a market share.
With regard to electronic or e-services, the absence of accurate information
on factors that have influenced users’ behaviour could mislead an
organisation into adopting unhelpful solutions as it strives to accelerate the
implementation of e-services. A large amount of research has been
conducted on the adoption of e-services by bank customers and the factors
that influence the adoption of these services. There is now growing evidence
that banks and customers benefit substantially from e-business and new
technology, and in particular the Internet (Zorayda, 2003:33). Since banks are
taking advantage of e-services, the main aim of this study was to determine
the factors that influence customers’ utilisation of e- services.
In this first chapter, the researcher outlines the importance of prioritising
research on the factors that influence customers’ decision to adopt e-services
offered by banks. The first section of this chapter provides a background to
the study, and the second section presents an overview of the evolution of
the banking sector in Cameroon. The third section discusses the problem
statement, and the objectives and hypotheses of this study are presented in
the fourth section. The fifth section of the chapter describes the significance
of the study, whereby an attempt is made to explain how this study differs
from previous research conducted in the same country or on the same topic
in another country. Section 1.7 discusses the limitations of the study, and the
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final section of this chapter presents a layout of the remaining chapters of this
study.
1.2 Background to the study
Taking advantage of information and communications technology (ICT) is an
increasing challenge for developing countries. According to Nyangosi, Arora
& Sumanjeet (2009:82), banking through electronic channels has gained
popularity in recent years. This system, popularly known as “e-banking1”,
provides fast delivery of banking services to a wide range of customers. The
Internet, one of the most successful innovations in the world, has created
numerous opportunities as well as threats for organisations in various
business and service sectors, compelling them to (either willingly or
unwillingly) support their products or deliver their services ‘online’ using the
Internet as the distribution channel (Chau & Lai, 2003).
Public and private organisations across the world are realigning their
strategies to take advantage of this opportunity and to overcome the
challenges in terms of the way in which they operate, deliver services and
compete with each other using online services (Chan & Lu, 2004).
Boyer et al. (2002: 177) have defined online services as “the initial landing on
the home page until the requested service has been completed or the final
product has been delivered and is fit for use". For the banking sector, e-
banking is now a global phenomenon. It is an invaluable and powerful tool
driving development, supporting growth, promoting innovation, and
enhancing competitiveness (Kamel, 2005 and Nath, Shrick & Parzinger,
2001). Technological innovations have been identified as contributing to the
distribution channels of banks, and these electronic delivery channels are
1electronic banking
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collectively referred to as electronic banking, hereinafter referred to as e-
banking (Goi, 2005).
1.2.1 E-banking
E-banking is the term used for all types of electronic banking - it is also
known as online banking or Internet banking. E-banking uses the Internet as
the delivery channel to conduct banking activities, such as transferring funds,
paying bills, viewing account balances, paying mortgages and purchasing
financial instruments and certificates of deposits (Mohammed et al,
2009:141). E-banking is also known as electronic funds transfer (EFT). It is
basically the use of electronic methods or means to transfer money directly
from one account to another, rather than carrying cash around or paying by
cheque. With e-banking, people can withdraw money from Automatic Teller
Machines (ATM) or pay accounts using a debit/credit card at any time of the
day (Rahimuddin & Bukhari, 2009). Electronic delivery channels are
collectively referred to as electronic banking. There are three main types of
electronic banking, viz: automated teller machines, mobile banking, and
online banking. Mobile and online banking offer security alerts so that clients
know immediately what activity is occurring on their account. Alerts are sent
directly to a client’s cell phone or email address when credit or debit
transactions are completed on the account. One can also receive daily alerts
of the bank account balance.
Various authors and researchers have provided definitions of e-banking or
Internet banking. Chalam and Rao (2007: 18-19) give perhaps the most
comprehensive definition. After referring to e-banking as the use of
technology in daily banking transactions by customers to access services
electronically through the phone, personal computer and Internet, they
identify the following e-banking products:
Automatic Teller Machine (ATM)
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Electronic Funds Transfer (EFT)
Personal Computer Banking (PCB)
Share Payment Network System (SPNS)
Point of Sale Terminal (POS)
Electronic Data Interchange (EDI)
Structured Message Transfer System Using SWIFT
Corporate Banking Terminal
Telebanking.
Consequently, the terms e-banking, online banking and Internet banking are
used interchangeably to mean the same thing. In this study, these terms are
also used interchangeably to refer to e-banking.
1.2.2 E-banking in developing countries
Nowadays, most developed countries are using electronic banking and a
large number of studies have been conducted in this regard in these
countries. These include the study by Pyun et al. (2002) in the U.S., Japan
and Europe; Gurau (2002) in Romania; Sathye (1999) in Australia; Polatoglu
and Ekin (2001) in Turkey; Balachandher et al. (2000) in Malaysia, and
Jasimuddin (2004) in Saudi Arabia who all worked on the factors which can
affect e-banking in different countries. Besides the developed countries,
developing countries are also experiencing a strong growth in e-banking.
Countries such as India and the Republic of Korea are experiencing a
particularly strong growth in e-banking. In South East Asia, Internet banking
is also developing rapidly, especially in Thailand, Malaysia, Singapore, and
the Philippines (Mia et al., 2007). Similar trends were also observed by
Thulani et al. (2009) in Zimbabwe; Guangying (2009) in China; Dhekra (2009)
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in Tunisia; Adesina and Ayo (2010) and Maiyaki and Mokhtar (2010) in
Nigeria; and Salehi and Alipour (2010) in Iran.
A strong banking industry is important in every country and can have a
significant effect in terms of supporting economic development through
efficient financial services (Salehi & Azary, 2008, Salehi et al., 2008).
However, there are several major challenges and issues facing the growth of
e-banking and e-business in general. One major obstacle is the security
concern (Feinman et al., 1999; Financial Service, 2001). Another challenge
for e-business (including e-banking) is the quality of the delivered service -
including both delivery speed and delivery reliability (Furst et al., 2000). As an
Internet- based technology, e-banking is new and quite unfamiliar to some
people in developing countries, due to the “digital divide” and the different
levels of Internet experience and environments.
There is a range of theories related to the adoption of new technology. The
main theories in this regard are the Theory of Reasoned Action (TRA)
developed by Fishbein and Azjen (1975), the Innovative Diffusion Theory
developed (IDT) by Rogers (1983), the Theory of Planned Behaviour (TPB)
developed by Ajzen (1985), and the Technology Acceptance Model (TAM)
developed by Davis (1989). As this study aims to increase our current
understanding of the factors that influence the acceptance of e-banking, the
Innovative Diffusion Theory (IDT) will be used as a guideline, but will not
exclude a discussion of the other theories. Since the study is interested in
demographic and social influences on the attitudes of the consumer, the IDT
is the theory which focuses most on those characteristics, as it explores
communication channels, individuals, organisational members and social
systems, except for the technology itself (Rogers, 1995). Other theories focus
more on security, risk, privacy, perceived usefulness and perceived ease of
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use. More precisely, acceptance of online banking is studied from the
information systems perspective, by examining whether or not factors such
as demographics, attitudes and perceptions of customers, as well as social
factors, have an influence on the adoption of new technologies such as
Internet banking.
Studies on e-banking have received special attention during the last decade
(Waite & Harrison, 2008:50). E-banking is adopted by a banking system for
various reasons, which include increasing customer demands, the need to
increase sales to existing customers, changes in the environment, and the
need to achieve competitive advantage and increased efficiency.
In recent times, e-banking has spread rapidly throughout the world. All banks
are rushing to adopt e-banking and make greater use of its facilities to
provide a better service and achieve a competitive advantage. The spread of
e-banking has benefited both the customer and the banking industry in
developed and developing countries. Many of the ordinary tasks have now
been fully automated, resulting in greater ease and comfort. Customers can
have access to money 24 hours a day, 7 days a week simply by clicking a
mouse or inserting a card into the ATM, and they can manage their
transactions via an Internet connection anywhere in the world.
Kannabiran and Narayan (2005) have observed that banks and other
businesses are turning to information technology (IT) to improve business
efficiency and service quality, and to attract new customers. Technological
innovation has been identified as contributing to the distribution channels of
banks. According to Chang (2003) and Gallup Consulting (2008), the
evolution of banking technology has been driven by changes in distribution
channels.
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1.3 Overview of the banking system in Cameroon
Cameroon is the largest country within the Economic Monetary Community of
Central Africa (CEMAC).Its GDP in 2010 was estimated at US$ 44.327 billion
and its per capita income at US$ 2,170, which represents half of the GDP of
the CEMAC sub-region (Jeune Afrique Economie, 2011). Cameroon has
experienced stable economic growth over much of the past decade and now
has a relatively diversified economy, with services representing about 44
percent of the GDP and agriculture and manufacturing each accounting for
about 19 percent of the GDP in 2009 (mfw4a, 2011).
Before the independence of the country in 1960, the banking system in
Cameroon was dominated by foreign banks. After independence, foreign
financial institutions were French banks, which were there to finance French
investments in the country. The existing banks at that time were SCB
(Societe Camerounaise des Banques), Credit Lyonnais Group, BICIC
(Banque International pour le Commerce et l’industrie du Cameroun), SGBC
(SociétéGénérale de Banques du Cameroun), Groupe Société Générale, and
la Banque Internationale pour l’Afrique Occidentale au Cameroon (Groupe
BIAO).
Various American banks then entered the market, namely Chase Manhattan
Bank of Cameroon (Groupe Chase Bank), Boston Bank of Cameroon
(Groupe Boston Bank), and the Bank of America (Groupe Bank of America).
Subsequently, the government started to involve itself in foreign banks and
acquired partial ownership of BICIC, BIAO, SGBC and Credit Lyonnais. This
continued until 1987, when a financial crisis occurred in the country. The
crisis resulted in rising prices in Cameroon, trade deficits, and loss of
government revenue. It changed the evolution and health of each bank,
depending on whether it was a foreign or domestically owned institution.
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Many financial institutions closed, while others changed ownership. Several
other banks have been established in the country since then, however.
The bank of issue (the bank which has the right to issue currency and
regulations on how banks must operate in Central African countries) is the
Bank of the Central African States (Banque des Etats de l'Afrique
Centrale‐BEAC), which replaced the Central Bank of the State of Equatorial
Africa and Cameroon in November 1972. Its headquarters are in Yaoundé. In
1993, member states of the BEAC created a supranational supervisory
authority; the Commission Bancaire de l'Afrique Centrale (COBAC), in order
to secure the region's banking system.
In the past decade, there has been a proliferation of financial institutions in
Cameroon, ranging from banks to micro-finance institutions. In addition to the
old banks viz.: BICEC, SGBC, SCB credit Lyonnais, SCB credit Agricole,
Standard Chartered, and Afriland First Bank, new banks have emerged, such
as Oceanic Bank, Citibank, Union Bank of Cameroon, United Bank for Africa,
National First Finance, Amity Bank, Atlantic Bank, CBC and Ecobank
(allafrica, 2011). Today, there are 15 banks whose spread of branches is very
unequal. For example, Ecobank Cameroon, which is the most represented
bank in terms of branches (26 branches in the country), has 20 branches in
Douala and Yaoundé, while the rest are in the other main cities of the
country, and there is no branch in rural areas.
With the emergence of new technology, all sectors are introducing a variety
of innovative services - this is also the case with the banking sector, which is
now offering customers a wide range of electronic services. As observed by
Tizirai (2011), the evolution of e-banking facilities started in Europe in the
1970s. In Cameroon, until 1997, banks were only offering services through
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the physical branch. Now, with the changes in the banking environment, they
are also offering electronic banking services. It was only in the 1997 that the
first e-banking products were introduced. The country now has electronic
services such as Automated Teller Machines (ATMs), SMS banking, Internet
banking, Point of Sales (POS) machines, and telephone banking.
Djoumessi (2009:74-75) noted that in 2009, there were only 46 ATMs
throughout Cameroon. Till now, ATMs are in the main cities, where there are
bank branches. In comparison to a country such as South Africa, which has
approximately 18 000 ATMs, it is almost as if there are no ATMs in
Cameroon (Douglas, 2009). As of 2010, 13 out of the 15 banks are offering
online financial services (African Report, 2010). In Cameroon, research was
conducted on electronic commerce issues (Nlemba, 2008), computer usage,
Internet usage, telephone usage (NIS, 2010) and electronic banking
(Mahmoudou, 2010). In his study, Mahmoudou (2010) focused on the e-
banking tools in the country and showed how weak e-banking is in
Cameroon.
Internet banking is still new and one of the central issues is the spread of
Internet usage throughout the country, which is still very low at 2% in 2006
and 3.8% in 2009 (Internet worldstats, 2011). There are tools such as the
Internet, mobile phones, personal computers and secure Internet servers
which interact with e-banking. A country cannot fully develop e-banking if the
indicators on the use of these tools are still weak. Table 1.1 shows the
information and communications technology (ICT) indicators within certain
countries around the world, including Cameroon.
10
Table 1.1: Trends toward Using and Owning a Technology
Country Secure internet
server per 1
million people
Mobile cellular
subscribers per
100 inhabitants
Internet users
per 100
inhabitants
Personal
computer per 100
inhabitants
2002 2010 2002 2010 2002 2010 2002 2006
France 45.95 354.1 64.55 100.66 29.19 77.28 34.73 65.02
United
Kingdom
268.03 905.1 82.96 130.76 56.49 84.73 40.41 80.19
Sweden 19.83 132 89.3 116.05 70.39 90.01 62.26 88.1
Cameroon 0.06 0.56 4.28 44.07 0.36 4 0.54 1.2
Nigeria 0.02 1.21 1.21 55.01 0.32 28.43 0.65 0.85
South
Africa
14.05 62.59 29.78 100.48 6.78 12.33 7.29 8.46
Egypt 0.24 2.29 6.41 87.11 2.72 26.74 1.54 3.92
Zimbabwe 0.55 1.03 2.69 61.25 3.99 11.5 4.79 6.94
Source: Tradingeconomic.com, 2012
It is apparent from Table 1.1 that Internet, mobile and personal computer
penetration is still very low in Cameroon. The ICT penetration rate is very
high in developed countries, which is perhaps the reason why e-banking is
also developed in those countries. In comparing the rate of ICT penetration
with other developing countries, one can note that there is still a long way to
go before e-banking is widely adopted.
According to afrilandfirstbank (2011), Cameroonian banks offer the following
online banking services and products to their customers:
11
Inquiry: Account balance inquiry, account statement inquiry, fixed deposit
inquiry, cheque statement inquiry.
Payment: Credit and debit card payments, transfer of funds, utility bill
payments and direct payments.
Request: Demand draft requests, stop payment requests, cheque/cheque
book requests, new fixed deposit requests.
Download: Statement download, customer profile download, other
information and guidelines.
In Cameroon, banks prefer to serve large enterprises rather than SMEs.
However, the main problem is the limited number of large enterprises, which
only constitute 5% of all enterprises in the country (NIS, 2009). Banks are
nevertheless trying to form closer ties with those who are working in the
informal sector and living in rural areas through various projects. Access to
financial services is limited, particularly for SMEs.
According to the financial inclusion indicators compiled by Dermirguc-Kunt
and Klapper (2012: 18), Cameroon fares as follows:
15% of adults have an account at a formal financial institution;
4% of adults have at least one loan outstanding from a regulated
financial institution;
92% of SMEs have an account at a formal financial institution;
26% of SMEs have an outstanding loan or line of credit;
1.43 commercial bank branches per 100,000 adults; and
1.4 ATMs per 100,000 adults
12
Internet security is still one of the major issues hindering the growth of
Internet-related business transactions. Since the Internet is an open network,
high security risks are involved with financial transactions. Internet fraud is
common, and related stories get immediate media attention, making people
hesitant to bank online. Various security measures (including hardware and
software) are currently being tested and employed in Cameroon, but there is
still some way to go in order to win the trust of a large majority of customers
(Mols, 1999). Mobile devices are increasingly becoming a target for virus
writers, hackers and short message service (SMS) spammers. According to
Tower Group’s research (2010), over 200 mobile phone viruses have been
identified since phones have become capable of supporting PC-like
applications such as email, instant messaging and Web browsing, and this
number is doubling every six months (Blau, 2007). The resulting disruption of
services and data theft can cause many problems for consumers, including
lost revenues and customer dissatisfaction for mobile operators. As a result,
banks suffer losses. This factor may cause many banks to be hesitant to
provide mobile banking services. As observed by Defenceweb (2010),
Cameroon is home to the world's riskiest Internet sites, according to cyber-
security firm McAfee. Cameroon's place at the top of the Internet fraud list is
partly a result of the alphabet. Criminals are taking advantage of Cameroon's
Internet suffix ".cm" to trick careless Web surfers who mistype the popular
".com" suffix. By establishing false ".cm" sites that appear similar to the
".com" Web page that people think they are going to, criminals can acquire
personal information for identity theft and the spreading of spyware and
malicious downloads.
As reported by Hallelaw (2009), the banking industry in Cameroon is
governed by laws and regulations whose sources are listed as international
conventions, customs law, ordinances, presidential decrees, ministerial
orders, circulars and court decisions. These regulatory instruments are
13
flexible in character, which means that they can be modified in accordance
with socio-cultural, political and economic developments within Cameroon.
Banking regulations vary between jurisdictions.
The reason for the lack of complete adoption of e-banking in developing
countries such as Cameroon is an important research area and will be
addressed by this study. Despite the growth of IT worldwide, bank customers
in Cameroon continue to conduct most of their banking transactions using
traditional methods. Understanding the factors that influence the adoption of
e-banking in developing countries such as Cameroon is therefore an
important area of research.
1.4 Problem statement
Cameroonian private banks such as Afriland First Bank and Commercial
Bank of Cameroon are now expanding their business to other countries
around the world. In many banks throughout the world, e-banking is now the
focal area of bankers because it reduces the cost of doing transactions,
attracts new customers, makes transactions faster than before, creates new
markets, and enhances service quality. In Cameroon, e-banking is a new
industry and consumer acceptance and use of e-banking is still limited. There
is only a vague understanding of factors influencing consumers’ adoption of
e-banking. Very little research has been undertaken in Cameroon on factors
influencing the consumer’s adoption of e-banking (Dobdinga, 2012), hence
the need for a study of this nature. The following question can therefore be
asked: What are the factors that influence the adoption of e-banking in
Cameroon? An understanding of how demographic characteristics, social
influences, consumer perceptions and attitudes toward e-banking influence
the adoption of e-banking will enable banks to develop solutions and plans
to attract consumers and gain a bigger market share.
14
1.5 Objectives of the Study
The main objective of this study is to determine how demographic
characteristics, attitudes and social influences impact on the bank
customer’s decision to adopt e-banking. To achieve the main objective,
the following secondary objectives will be highlight:
To identify the factors that influence the adoption of e-banking in
Cameroon;
To investigate the barriers and challenges with regard to the
adoption of e-banking;
To determine the differences between perceptions of e-
Banking among users and non-users; and
To investigate the relationship between demographic factors and
the adoption of e-banking.
Hypotheses
In order to meet the objectives pursued in this study, the following
hypotheses were tested:
H1: There is a relationship between demographic
characteristics and the adoption of e-banking.
Studies have explored the potential relationship between
demographic characteristics of customers and the adoption of e-
banking. This relationship is found to be as significant as the
psychological factors in determining its adoption (Gan et al.,
2006; Yuan et al., 2010).
15
H2: There is a difference in perceptions of e-banking
between users and non-users.
Adopters have invariably been found to have different perceptions
about an innovation in comparison with non-adopters (Ching and
Ellis, 2004). Some products catch on immediately, while others
take a long time to gain acceptance. In general, the perception of
an innovation is positively related to its adoption (Rogers, 1983).
H3: Social influences have an impact on the adoption
of e-banking.
Social factors are a dominant force that not only encourages
consumers to adopt Internet banking, but also to continue banking via
the Internet. The opinion of a reference group is an important factor
influencing the adoption of Internet banking (Cheung: 2001). Social
pressures can emanate from any group, such as parents, colleagues
or friends (Cheung et al., 2000).
1.6 Significance of the study
Cameroon was chosen as the country to be studied for a variety of
reasons, such as the availability of long-term data on its banks, as well as
the fact that it is the country in the CEMAC region with the largest
financial sector. In Cameroon, the economic environment is similar to that
of other developing countries in Africa, which means that the results of
the study can be used to facilitate the adoption of e-banking by
customers or increase its usage in these countries. Moreover, from all the
studies conducted in Africa with regard to the electronic banking system,
most have focused on the south or east of Africa (Emma, 2009;
Gardache, 2010; Rudi et al., 2001). In Central Africa, there has been very
little research in this field, and the research conducted in the region,
especially in Cameroon, has focused mainly on the regulation of the
16
banking sector or the conditions of banking loans (Djoumessi, 2009;
Ngafi, 2006; Halle, 2011; Mahmoudou,2010).
1.7 Limitations of the study
The study is limited to two main cities, Douala and Yaoundé. According to
Kuindja (2009:57), there are 161 bank branches in Cameroon - Douala and
Yaoundé have 101 bank branches, which is two-thirds of the total. Therefore,
it is expected that responses will be fairly representative of the total banking
population in Cameroon. The other limitation relates to lack of data regarding
the population of bank customers in the country. Due to confidentiality issues,
banks are reluctant to provide information regarding their customers.
1.8 Chapter outline
The rest of the dissertation is structured as follows:
Chapter 2: Literature Review
The different theories developed with regard to the adoption of new
technology and innovation is discussed, with a specific focus on the theory
which helped to highlight the objectives of the study. In this chapter, the study
will also highlight the findings of previous studies on the adoption of e-
banking in developed and developing countries.
Chapter 3: Methodology
This chapter describes how data was gathered from bank customers and
bank management in Cameroon. The chapter also describes the analytical
techniques employed in this study. The problems encountered during the
data-gathering process and the ethical issues that had to be addressed are
also documented.
17
Chapter 4: Research Findings and Discussion
This chapter analyses data, tests hypotheses and presents findings in relation
to this study. It also discusses the results with reference to other empirical
studies.
Chapter 5: Conclusion and Recommendations
This last chapter concludes the study by summarising the results. Future
scenarios regarding what can be expected from bank customers and how the
industry could meet its needs are also discussed.
18
CHAPTER. 2. LITERATURE REVIEW
2.1 Introduction
The rapidly changing global information infrastructure (information technology
and computer networks such as the Internet and telecommunications
systems) has resulted in the development of electronic commerce at a global
level. These developments have created a new type of economy, commonly
referred to as the ‘digital economy’. This new economy is characterised by
rapidly changing technology, increasing knowledge intensity in all areas of
business, and the creation of virtual supply chains and new forms of business
and service delivery channels, which, among others, include e-banking. The
transformation of an organisation from an old-fashioned company to a new,
agile, electronic corporation is not easy and requires a lot of innovative
thinking, planning and investment (Shah & Clarke, 2009). This chapter
explores these dynamics and is divided into two main sections, with the first
focusing on the various theories relating to the acceptance of e-banking by
customers, and the second focusing on the different aspects of e-banking
throughout the world.
2.2 Theories of e-banking
Although numerous studies on user adoption of technology were conducted
in the past, very few focused on e-banking or Internet banking (IB) (American
Banker, 2007). Some researchers investigated individuals’ perceptions
regarding the adoption of Internet banking for corporate purposes, and one of
the theories in this regard is the technology acceptance model (TAM)
developed by Davis (1989). In order to also understand why customers are
not embracing e-banking, it will be useful to examine the theory of planned
19
behaviour, developed by Ajzen (1985) and the innovative diffusion theory,
developed by Rogers (1983), which aim to identify the attitudinal, social and
perceived behaviour control factors that influence the adoption of e-banking
or Internet banking (IB).
Nasim (2009:1) states that in adopting e-banking or Internet banking, there
are certain stages through which firms go, each with different roles. These
different stages are reflected in the many levels that are present when firms
undertake the adoption of new technology. These stages, whether for a
mature firm or one that is relatively new, will also apply to a bank which is
adapting to or using e-banking or IB. According to Spreadingscience (2009),
firms go through five main stages, viz:
Information awareness, where the individual is simply aware that
the innovation exists;
Interest, where the individual wants more information and begins
to wonder whether or not the innovation will be to his/her
advantage;
Evaluation, where the individual mentally examines the innovation
using the information gathered;
Testing, where the individual actually tests the innovation to see if
reality matches expectations; and
Adoption, where the individual likes the innovation and adopts it
wholeheartedly.
In the process of implementing e-banking, banks go through various levels of
development, ranging from a marketing approach (involving changing the
presentation and interactivity) to a strategic approach (redefining the
business model). Whether a bank envisions a marketing-oriented approach
or a business-oriented approach depend on the degree to which it is willing to
20
adapt e-banking, as well as the target market’s understanding and
acceptance of e-banking (Nasim, 2009: 6).
There are various factors related to the adoption of new technology.
According to Nasim (2009:7), a bank must first attract the consumer’s
attention to Internet banking services before the consumer will consider e-
banking. However, unless the consumer has a high level of Internet
accessibility at home or at work, he/she is unlikely to consider adopting e-
banking. The consumer also determines whether or not it is convenient to do
banking this way (convenience), how usable the application appears to be
(usability), and his/her perceived competence in terms of Internet and
banking application use (self-efficacy).
The four factors of accessibility, self-efficacy, convenience, and usability are
interrelated. The consumer also considers whether or not the perceived
relative advantages of e-banking, compared with other banking forms,
outweigh the perceived risks and costs. In addition, the availability of
sufficient support and in-depth knowledge from the bank and its employees
contribute significantly to the decision to adopt or reject the service. These
factors are illustrated in figure 2.1 below.
Figure2.1 . Key factors in consumer adoption of e-banking or IB: a generic
theoretical framework
Source: Nasim (2009:7)
Accessibility
Attention
(Awareness) Convenience
Trust and
Security
Knowledge and
Support
Adoption of
Internet
Banking
21
This study focusses on 3 main theories: the technology acceptance model
(TAM), the innovative diffusion theory and the theory of planned behaviour.
These theories are explained below.
2.2.1 Technology acceptance model (TAM)
Davis (1989) developed the TAM, according to which users’ adoption of a
computer system depends on their behavioural intention to use, which in turn
depends on their attitude and two beliefs, namely perceived ease of use and
perceived usefulness. The TAM has become a widely used model for
predicting the acceptance and use of information systems, and has recently
also been applied in order to predict Internet adoption. It is an adaptation of
the Theory of Reasoned Action (TRA) developed by Fishbein and Ajzen
(1975) in the field of information systems. In essence, the TAM posits that
perceived usefulness and perceived ease of use determine an individual's
intention to use a system. Perceived usefulness is also viewed as being
directly influenced by perceived ease of use. Researchers simplified the TAM
by removing the attitude construct found in the TRA from the current
specification (Venkatesh et al., 2006:431). Attempts to extend the TAM
generally adopted one of three approaches: (1) introducing factors from
related models, (2) introducing additional or alternative belief factors, and (3)
examining antecedents and moderators of perceived usefulness and
perceived ease of use (Wixom and Todd, 2005:87). Moon and Kim (2008)
applied the TAM in their study in the WWW context. They introduced the
construct of playfulness in order to predict attitude. Data was collected from
152 graduate management students in Korea. Their findings showed that
although TAM-related hypotheses were all supported, the results deviated
from the basic belief of the TAM that usefulness is the key determinant of
user acceptance of IT. The results of Moon and Kim (2008) revealed that
perceived ease of use has a more significant effect on attitude than perceived
usefulness in the WWW context, and perceived playfulness (an intrinsic
22
motivational factor) has a more significant effect on attitude than perceived
usefulness (an extrinsic motivational factor). A system that satisfies users’
needs reinforces satisfaction with the system and is a perceptual or
subjective measure of system success. Similarly, in some cases, usage of a
system can be an indicator of information systems success and computer
acceptance. Whether the system is regarded as good or bad depends on
how the user feels about it. In particular, if users do not rely on the system
and its information, their behaviour towards it could be negative.
According to the TAM, these two beliefs –perceived ease of use and
perceived usefulness- are of primary significance for computer acceptance.
Rusu and Shen (2011), who based their study of acceptance of e-banking in
the United Arab Emirates (UAE) using the TAM, observed that among the
elements, the intention to use a new technology is the main focus. Their
conceptual framework is depicted in figure 2.2 below.
23
Figure2.2 . Conceptual Model Extending the Classical TAM with Image,
Security, Computer Self-Efficacy and Convenience
Technology Acceptance Model
Source: Rusu and Shen (2011:3)
The findings of their empirical study provide support for the TAM theoretical
model, extended with convenience and computer self-efficacy. The results
support the view that computer self-efficacy and convenience are important
factors for determining the perceived ease of the use of e-banking or Internet
banking for customers in the UAE.
King and He (2006) conducted a statistical meta-analysis of the TAM as
applied in various fields using 88 published studies, and the results showed
the TAM to be a powerful, highly reliable, valid and robust predictive model
that may be used in a variety of contexts. Wang et al. (2003) confirm the
validity of the TAM and support its use with different populations of users and
different software choices.
In another study, Wang et al. (2003) studied the adoption of Internet banking
in Taiwan using the TAM model and introduced the new construct ‘perceived
IMAGE
Security
Computer Self
Efficacy
Convenience
Intention to
Use
Attitude
Perceived ease of
use
Perceived
Usefulness
24
credibility’, which reflects the user’s security and privacy concerns in the
acceptance of Internet banking. They found that there was a significant
impact of perceived ease of use, perceived usefulness and perceived
credibility on the intention to use Internet banking.
Bagozzi (2007: 246) highlighted the poor relationship among the different
constructs formulated in the TAM. He questioned the theoretical strength of
the intention-actual use link, and observed that behaviour could not be
viewed as a terminal goal. Instead, he argued that behaviour should be
treated as a means to a more fundamental goal. Moreover, he explained that
intention may not be representative enough of actual use, because the time
period between intention and adoption could be full of uncertainties and other
factors that might influence an individual’s decision to adopt a technology.
Burton-Jones and Hubona (2006) also applied the TAM in their research by
administering a survey to 125 employees of a US government agency.
Information about the participants’ beliefs and usage behaviour with respect
to two applications were gathered and analysed. The results suggested that
perceived usefulness and perceived ease of use may not mediate all the
influences of external environment factors on system usage. Instead, some
external factors such as system influence, level of education and age may
have a direct influence on system usage.
2.2.2 Theory of planned behaviour and innovation diffusion theory
Two other theories were developed in order to better understand the
acceptance of new technologies by customers. These are the theory of
planned behaviour (TPB) (Ajzen, 1985) and the innovative diffusion theory
(Rogers, 1983). In particular, the decomposed TPB model, first introduced by
Taylor and Todd (1973), was used in this study, since it was found to have
better predictive power than the technology acceptance model (TAM) and
traditional TPB models. Furthermore, Taylor and Todd (1973) stated that, in
25
comparing the two versions of the TPB, it is believed that value is added as a
result of the decomposition in terms of increased explanatory power and a
better, more precise understanding of the antecedents of behaviour. Thus, in
the researcher’s view, the decomposed TPB model is preferable to the pure
form of the model. In comparing this model to the TAM, Taylor and Todd
(1973) suggest that if the main goal is the prediction of usage, then the TAM
might be preferable.
However, the decomposed TPB model provides a better understanding of
usage behaviour and intention, and may provide more effective guidance for
IT managers and researchers interested in the implementation of the system.
The decomposed TPB model uses constructs from the innovation literature
(e.g. relative advantage, compatibility). It also explores subjective norms (e.g.
social influence) and perceived behavioural control more completely, by
breaking them down into more specific dimensions. It provides a
comprehensive overview of how an individual’s attitudes, subjective norms
and perceived behavioural control can influence his or her intention to use
banking services via the Internet (Taylor and Todd,1973).
As highlighted by IStheory (2005), the TPB posits that individual behaviour is
driven by behavioural intentions, where behavioural intentions are a function
of an individual's attitude towards the behaviour, the subjective norms
surrounding the performance of the behaviour, and the individual's perception
of the ease with which the behaviour can be performed (behavioural control).
Attitude towards the behaviour is defined as the individual's positive or
negative feelings about performing the behaviour. It is determined through an
assessment of one's beliefs about the consequences arising from behaviour
and an evaluation of the desirability of these consequences. Formally, overall
attitude can be assessed as the sum of the individual consequence multiplied
by desirability assessments for all expected consequences of the behaviour
(Wu, 2009:52). Subjective norm is defined as an individual's perception of
26
whether or not people important to the individual think that the behaviour
should be performed. The contribution of the opinion of any given referent is
weighted by the motivation that an individual has to comply with the wishes of
that referent. Hence, overall subjective norm can be expressed as the sum of
the individual perception multiplied by the motivation assessments for all
relevant referents.
Behavioural control is defined as one's perception of the difficulty of
performing a specific behaviour. The TPB views the control that people have
over their behaviour as lying on a continuum of behaviours that are easily
performed, as opposed to those requiring considerable effort, resources etc.
(Ajzen, 1991).
Tan and Teo (2009: 8) shared this view and postulated that a person’s
intention to adopt Internet banking is determined by three factors:(1) attitude,
which describes a person’s perceptions regarding Internet banking; (2)
subjective norms, which refer to the social influence that may affect a
person’s intention to adopt Internet banking; and (3) perceived behavioural
control, which refers to whether or not a person believes that he/she has the
necessary resources and opportunities to adopt Internet banking. These
factors are summarised in figure 2.3 below.
27
Figure2.3 . Research framework for the adoption of Internet banking
services
Source : Tan and Teo (2009:8)
Sadeghi and Farokhian (2011:2) observed that an individual’s intention to
adopt an innovation is influenced by his/her attitude towards the behaviour
and subjective norms. Therefore, a person’s behaviour is determined by
his/her intention to perform the behaviour. The attitude towards performing
the behaviour is an individual’s positive or negative belief about performing
the specific behaviour. In fact, attitudes comprise the beliefs that a person
accumulates over his/her lifetime.
Attitude
- Relative Advantage
- Compatibility
- Values
- Internet experience
- Banking needs
- Complexity
-Trailability
- Risk
Subjective Norms
Perceived Behavioural Control
- Self-efficacy
- Facilitating Conditions
- Availability of
Government Support
- Availability of
Technological Support
Intention to Use Internet Banking
Services
Use of Internet Banking
Services
28
Rivis and Sheeran (2010) applied the TPB to assess the predictive validity of
prototypes and descriptive norms in relation to young people’s exercise
behaviour. Their findings supported the utility of the TPB, descriptive norms,
prototype similarity and past behaviour in predicting intentions and behaviour.
Importantly, prototype similarity was directly associated with behaviour, both
on its own and through its relationship with descriptive norms, even after
controlling for the TPB and past behaviour. Côté et al. (2012) used the TPB
to predict nurses' intention to integrate research evidence into clinical
decision-making. The theory showed that nurses' intention to integrate
research findings into clinical decision-making can be predicted by moral
norms, normative beliefs, perceived behavioural control and past behaviour.
Moga (2009:1) observed that the critical factors determining the adoption of
an innovation at the general level are the following: relative advantage,
compatibility, complexity, trialability and observability. Researchers such as
Tan and Teo (2009), Gerrard and Cunningham (2007) and Nor and Pearson
(2007) tested the theory on the adoption of e-banking. The nominalised
factors are complexity, trialability and observability. In terms of compatibility
with the needs of potential adopters, e-banking can be seen as an
expeditious tool that allows customers to better manage their multiple
accounts. The more financial products and services there are, the more it is
expected that individuals who have many financial accounts and subscribe to
a variety of banking services will be inclined to adopt e-banking.
Abukhzam and Lee (2010:5) opined that bank managers’ perceptions of two
basic concepts provide a broader understanding of adoption of e-banking in
the banking industry than that of previous theories and models, including the
Theory of Reasoned Action, the Theory of Planned Behaviour, the
Technology Acceptance Model and Innovative Diffusion Theory. These
perceptions are the following: perceived technological features such as ease
29
of use and usefulness, compatibility, complexity and perceived risk and
security; and perceived managerial and organisational issues such as
organisational change, top management support and IT funds. Moga (2009:4)
observed that there are several steps that must be taken by banks in order to
increase accessibility. These steps are summarised in figure 2.4 below.
30
Figure2.4 . The steps taken by banks in their effort to increase
Accessibility
Source: Moga (2009:4)
Easeof use
Compatibility
Self-efficacy
Perceived
usefulness
Technical
resources
Complexity
TrialabilityT
railability
Observability
Attitude
Towards the
behavior
Cultural
factors
Accessibility
Cost
Time
Perceived
behavioral control
Empirical
study factors
Trust and
security
Motivation
theories (DTPB)
Factors
IDT Factors
Intention to
use internet
banking
31
Based on her research findings, Moga (2009) identified factors that should be
included in the main model to predict the adoption of IT, in particular e-
banking. These factors are shown in figure 2.4 above. In reviewing this
proposed model, it can be observe that four distinct components are
represented: security and trust, empirical factors, national attributes, and
classical theory focused on technology acceptance. The final proposed model
should be developed by taking these factors into consideration.
Customer attitudes towards Internet banking are driven by trust, which plays
an important role in increasing usability within the Internet banking
environment. The issue of trust is more important in online as opposed to
offline banking, because transactions of this nature contain sensitive
information and parties involved in the financial transaction are concerned
about access to critical files and information transferred via the Internet
(Alsajjan & Dennis, 2006; Suh & Han, 2008).
As stated by Werner (2004:128), the TRA and TPB have some limitations in
terms of predicting behaviour. The first limitation is that intention determinants
are not limited to attitudes, subjective norms and perceived behavioural
control, as there may be other factors that influence behaviour. The second
limitation is that there may be a substantial gap in time between assessment
of intention to perform a specific behaviour and the actual behaviour being
assessed. In that time gap, the intention of an individual might change. The
third limitation is that both the TRA and TPB are models that predict an
individual’s actions based on certain criteria. Individuals do not, however,
always behave as predicted by those criteria.
Ogden (2007: 426) notes that the TRA and the TPB are pragmatic theories,
but criticises their conceptual bases and discusses several limitations of
these theories. Firstly, based on the literature review, she observes that some
studies of the TPB did not report any role for subjective norms, while others
32
showed no predictive role for perceived behavioural control, and some
showed no role for attitudes.
In the innovative diffusion theory developed by Rogers (1983:213), three
main characteristics of innovations were identified: relative advantage,
compatibility, and complexity. Adopters were invariably found to have
different perceptions about these characteristics in comparison with non-
adopters. Some products catch on immediately, while others take a long time
to gain acceptance. If the innovation is perceived to be better than the
existing system (a measure of its relative advantage), is consistent with the
needs of the potential adopter (a measure of its compatibility), and is easy to
understand and use (a measure of its complexity), it is more likely that a
favourable attitude towards the innovation will be formed (Ching & Ellis,
2004:411).
2.2.2.1 Relative advantage
Lee et al. (2011:127) stated that relative advantage is defined as the degree
to which an innovation is considered to be better than the idea it replaced.
This construct is found to be one of the best predictors of the adoption of an
innovation. Robinson (2009) opined that it is the degree to which an
innovation is perceived by a particular group of users as being better than the
idea it supersedes, measured in terms of economic advantage, social
prestige, convenience, or satisfaction. The greater the perceived relative
advantage of an innovation, the more rapid is the rate of adoption. There are
no absolute rules for what constitutes “relative advantage”, as it depends on
the particular perceptions and needs of the user group.
Gerrard and Cunningham (2007:8) identified perceived relative advantage as
being a significant factor driving the adoption of e-banking. Hence, relative
advantage is often the content of network messages with regard to an
33
innovation. Consumers may be motivated to use some electronic banking
technologies because of their time-saving ability. Time-saving equates to a
customer being able to access the services of a bank without physically
visiting a branch. In one survey of computer banking users, 79% indicated
that convenience was very important in their decision to use computer
banking, and 71% said that saving time was very important (Fox, 2006:9). A
survey conducted in South Africa and reported by Goldstuck (2001:2) states
that another issue facing Internet banking customers is that they perceive the
Internet channel to lack functionality. Thus far, financial service providers
appear to have failed to communicate a clear value proposition to customers.
Most consumers reported that they do not use Internet-based financial
services nor expect to use them in the near future. Financial institutions thus
face a challenge in demonstrating that using the Internet as a service channel
will be worthwhile and that functionality will be delivered. The perceived
relative advantage of e-banking is positively related to the level of adoption.
Daghfous and Toufaily (2007:7) stated that the degree of adoption of e-
banking is higher if the bank believes that this innovation might increase the
performance of the bank. In their research in Malaysia on 100 Muslim
consumers of banking services, Marhana et al. (2012) found that relative
advantage is the most influential factor for the adoption of Internet banking,
followed by compatibility and complexity. The respondents perceived Internet
banking as having some relative advantages over conventional banking.
2.2.2.2 Compatibility
Lee et al. (2011:127) defined compatibility as the degree to which innovation
is regarded as being consistent with the potential end-users’ existing values,
prior experiences and needs. The compatibility of an innovation, as perceived
by members of a social system, is positively related to its rate of acceptance.
Robinson (2009) also suggested that compatibility is the degree to which an
innovation is perceived as being consistent with the values, past experiences
34
and needs of potential adopters. Therefore, an idea that is incompatible with
their values, norms or practices will not be adopted as rapidly as an
innovation that is compatible.
Wu (2009:56) stated that compatibility is defined as the degree to which an
innovation is perceived as being consistent with the existing values, past
experiences and needs of potential adopters. Bradley and Stewart
(2003:1089) discovered that the perceived compatibility of Internet banking is
a key driver in the adoption of Internet banking. Most of the previous studies
in this field found significant positive relationships in this regard and
concluded that compatibility significantly affected the adoption of Internet
banking (Hernandez & Mazoon, 2007; Eriksson, et al., 2008). The
convenience of online banking is helping people gain greater control of their
finances and contributing to changing patterns of cash withdrawal and day-to-
day money management (Beer, 2006). Marhana et al. (2012) opined that
when an innovation is compatible with the individual’s job responsibilities and
value system, the innovation will be more likely to be adopted. With regard to
banking, e-banking can be perceived as a banking channel that is compatible
with the profile of the modern-day consumer, who is familiar with the Internet
and is always busy.
2.2.2.3 Complexity
Lee et al. (2011:128) stated that complexity is the end-users’ perceived level
of difficulty in understanding innovations and their ease of use. Consumers
will reject an innovation if it is very complex and not user-friendly. Research
conducted in Estonia and reported by Kerem (2001:7) found that the most
important factors in starting to use Internet banking are, first and foremost,
better access to services (convenience), better prices, and a high level of
privacy. Better service (i.e. preferring self-service over office-service) is also
of above-average importance. Cooper (1997) reported that ease of use of
35
innovative products or services is one of the three most important factors
determining adoption from the customer’s perspective, which means that the
adoption of Internet banking is likely to be increased when customers
consider Internet banking processes to be easy to use. Marhana et al. (2012)
mentioned that an innovation that is simpler to understand and easy to use
will be adopted more rapidly than innovations that require adopters to acquire
new skills and understanding. Hence, the more complex an innovation is, the
slower its diffusion will be. However, modern-day consumers will find Internet
banking easy to use because they tend to be educated and have sufficient
understanding of computers and the Internet (Mohd-Suki, 2010). In a study
done in Malaysia on 100 Muslim consumers of banking services, Marhana
etal. (2012) found that the respondents who thought that Internet banking
was easy to use were more likely to adopt this service. Mohd-Suki (2010)
also found that complexity had a negative effect on the adoption of Internet
banking in Malaysia.
The three factors discussed above, namely relative advantage, compatibility
and complexity, are the main factors in the innovation diffusion theory.
However, they cannot be studied without considering factors which are linked
to them, such as perceived cost, perceived risk, demographic characteristics,
and social influences.
2.2.2.4 Perceived cost
According to Ching and Ellis (2004:414), adoption of e-banking will be driven
by the perceived costs and benefits inherent to the particular innovation. The
cost of an innovation has many components: initial investment costs,
operational costs, and utilisation costs. They also observed that there are two
fundamental sets of factors affecting user needs, namely price factors and
non-price factors. Hills (2004) found that with time, Internet costs are
decreasing and will be very cheap in the future, which will encourage the
36
adoption of e-banking. If consumers are to use new technologies, the
technologies must be reasonably priced in relation to alternatives. Otherwise,
the acceptance of the new technology may not be viable from the standpoint
of the consumer. As stated by Wu (2009:40), in South Africa, ABSA Bank
launched a marketing campaign offering free Internet access as a means of
promoting its Internet banking services in 2001. This campaign yielded the
desired result, with 20 800 people signing up in the first three days. The
service was introduced, the number of people banking online with ABSA
increased from 150 000 to 300 000, and ABSA has moved from the number
two position to become the top Internet banking provider in South Africa. In a
study conducted in Pakistan, Asghar (2012:6) stated that 63% of the
respondents did not find Internet banking to be an expensive service for them
to use, while 57% also agreed that there were no hidden charges for online
banking, as all the rates and charges were clearly and honestly
communicated to users. The study therefore concluded that perceived cost
has a positive effect on the adoption of Internet banking.
2.2.2.5 Perceived risk
Perceived risk has been identified by many studies as one of the most
influential factors in the adoption of e-banking (Laforet & Li, 2005; Erikson et
al., 2008; Aldas-Manzano, 2009). Customers perceive e-banking services as
being more risky than conventional banking (Zhao et al., 2008). Zeithaml et
al. (2008) found that there are several types of perceived risks, including
economic, functional, social, and psychological risks, which influence
customers’ pre-purchase decision. According to Almogbil (2005), perceived
functional performance of Internet banking determines whether or not it is
adopted. Due to its technical nature and self-service features, the functional
risk is higher among developing nations with high levels of illiteracy. In these
nations, perceived operating difficulty and chances of incomplete transactions
due to Internet slowness are thought to be high (Agarwal et al., 2009;
37
Kuisma et al., 2007; Aslam & Sarwar, 2010). Asghar (2012:6) also found that
perceived risk has an effect on the intention to adopt Internet banking. Lee
(2009) conducted a study to investigate the effect of perceived risk and
benefit on customers’ behavioural intentions to use online banking, and to
determine which factors have the most impact on the decision to use online
banking. He examined five specific risk types – financial, security/privacy,
performance, social and time risks - and found that “the intention to use
online banking is adversely affected mainly by the security/privacy risk, as
well as financial risk”. These findings were supported by another recent study
by Hua (2009:9), who investigated online banking acceptance in China. Hua
(2009) showed that perceived ease of use is of less importance than privacy
and security, and emphasised that “security is the most important factor
influencing user's adoption”.
2.2.2.6 Demographic characteristics
Previous studies also explored the potential relationship between
demographic characteristics of customers and the adoption of e-banking.
This relationship is as significant as psychological factors in determining its
adoption (Gan et al., 2006; Yuan et al., 2010). Wu (2009) stated that
demography is the study of human population statistics, including size, age,
sex, race, location, occupation, income, education and other characteristics.
Each of these characteristics influences the nature of consumer needs and
wants; ability to buy products; perceived importance of various attributes or
choice criteria used to evaluate alternative brands; and attitudes towards and
preference for different products. Hill (2004) conducted a study identifying the
demographic characteristics of online banking users. She noted that it is
commonly assumed that demographics influence the acceptance of
electronic services such as online banking. The results of the study were that
people who use such services are young, trendy and high-earning. They
38
actively seek out online banking tools, and they want to conduct all
transactions using the same channel.
Age
It was observed that most of the Internet banking subscribers belong to the
young generation, and the chance of its adoption among older people is low
(Wanget al., 2003; Yuan et al., 2010). According to Stoneman (2006:4), the
greatest concentration of computer owners who have banked online in the
USA are in the 18 to 34 year age group and represent 30% of the market. In
contrast, only 15% of the population in the 55 to 64 year age group owns a
computer and only 9% of this group banks online. Alagheband (2006)
asserted that young individuals are more likely to adopt Internet banking.
There is a strong relationship between age and the acceptance of
innovations, and he found that older consumers had more negative attitudes
towards new technologies.
Karjaluoto et al. (2002:271) indicated that age has an impact on the use of
Internet banking. The results imply that the typical user is between the ages
of 35 and 49. Hence, this study aims to determine whether or not age has an
impact on consumer acceptance of Internet banking.
Educational Level
Many studies found that the level of education has a very significant impact
on the adoption of Internet banking - as the educational level increases, the
likelihood of adopting online services also increases (Laforet & Li, 2005; Yuan
et al., 2010). Low levels of education and literacy are viewed as a significant
barrier to the diffusion of Internet banking services (Aslam et al., 2011). There
is a strong relationship between income and educational level. More
educated consumers have more money available to spend, and this affects
39
their lifestyle. According to Polatoglu and Ekin (2001:164), affluent and highly
educated groups generally accept changes more readily, making them the
most likely group of consumers to adopt e-banking. This is based on sample
information gleaned from their survey of Internet banking customers, which
revealed that 82% of those interviewed were university graduates, and 73%
reported being in the medium or high-income group.
Income
Income level has been found to be another significant demographic
determinant of the adoption of Internet banking (Aslam et al., 2011). It was
observed that the adoption of Internet banking is high among middle and
upper income groups, as opposed to low income groups (Laforet & Li, 2005;
Yuan et al. 2010). Similarly, the use of Internet banking is also found mainly
among customers with larger deposits in their accounts (Yuan et al., 2010).
Income is a popular demographic variable for segmenting markets because
income levels influence consumer wants and determine their buying power
(Lambet al., 2000:217).
According to the World Bank, Cameroon is an upper-middle income country,
as is South Africa, but it is also a country of stark contrasts. The extreme
inequality in Cameroon means that destitution, hunger and overcrowding are
seen alongside affluence. Therefore, this study also aims to determine
whether or not income has an impact on consumer adoption of Internet
banking in Cameroon. Worku (2010), in his study in Ethiopia on e-banking
acceptance, found that the cost of Internet access relative to per capita
income is a critical factor. Compared to developed countries, there are higher
costs of entry into the e-commerce market in Ethiopia. These include high
start-up investment costs, high costs of computers and telecommunications,
and high costs for licensing requirements. Choudrie and Dwivedi (2005) also
40
confirmed that the economic status of individuals influences their ability to
own and use a technology.
Occupation
Education, occupation and income level tend to be closely linked in a cause-
and-effect relationship. High-level occupations that are rewarded with high
incomes usually require advanced educational training. Individuals with little
education rarely qualify for high-level occupations (Yuan et al., 2010).
Karjaluoto (2002:359) relates this to Internet banking, where those currently
using online services are well-educated and have better occupations than
non-users. In conclusion, occupation has an impact on Internet banking and
current users tend to be employed in better positions than non-users. The
challenge facing banks in this regard is to find ways to make Internet banking
equally attractive to the majority of their clients who are not employed in top
occupations.
2.2.2.7 Social Influences
Groups having a direct influence on a person are called membership groups.
These are groups to which the person belongs and with which he/she
interacts. Some are primary groups, such as family, friends, neighbours and
co-workers with whom the person interacts fairly continuously (Yuan et al.,
2010). Family members constitute the most influential primary reference
group. The family of orientation consists of the person’s parents. From one’s
parents, a person acquires an orientation towards religion, politics and
economics, as well as a sense of personal ambition, self-worth and love.
Even if the buyer no longer interacts very much with his or her parents, their
influence on the buyer’s behaviour can still be significant (Aslam et al., 2011).
41
Cheunget al. (2000:55) stated that the Internet is such a widely discussed
topic that social pressure plays an important role in explaining its usage. It
follows, therefore, that social pressures may also affect Internet banking.
Social pressures can emanate from any group, such as parents, colleagues
or friends. While it would be difficult to predict how a particular group could
influence an individual in terms of the adoption of Internet banking, it is
nevertheless possible to assert that there is some influence by others on an
individual’s intention to adopt Internet banking. A survey conducted in Hong
Kong and reported by Cheung (2001:116) showed that classmates and
friends are likely to have an influence on potential adopters and users of
Internet banking. Social factors are a dominant force that not only influences
consumers’ adoption of Internet banking, but also their continued use of e-
banking. The opinion of a reference group is an important factor influencing
the adoption of Internet banking. To bring Internet banking to the attention of
reference groups, banks should more actively promote their online services.
With greater awareness, people are more likely to start discussing the
advantages and disadvantages of Internet banking. Once people realise that
its positive aspects outweigh any negative aspects, they are more likely to
accept Internet banking (Du, 2002:4).
According to the literature discussed above, many factors can influence the
customer’s decision to adopt or reject e-banking.
2.3 Evolution of e-banking
Asghar (2012:1) stated that science and technology are eager to provide
more facilities through research and innovation in all fields of life. The Internet
is one of the facilities that have become an integral part of life today. In
particular, the Internet has been a key driving force behind the change in the
banking industry. Marhana et al. (2012:1) mentioned that the advent of
42
Internet banking offers considerable opportunities and benefits for both banks
and consumers. Banks can expand their client base and rationalise their
business. Furthermore, Internet banking can also increase consumer
convenience, since many banking transactions such as transferring funds
and paying bills can be conducted online. Over the last few decades,
information technology and its use has been increased, and this has affected
the banking industry in such a way that banks can now differentiate their
products and services from those of others (Saffu et al., 2008).
2.3.1 History of e-banking
The precursors to modern home online banking services were the distance
banking services using electronic media, which were introduced in the early
1980s when banks began to look at e-banking as a means to replace some of
their traditional bank functions. This was because branches were very
expensive to establish and maintain due to the large overheads associated
with them, and e-banking products and services, such as ATMs and
electronic funds transfer, were a source of differentiation for banks that
utilised them. The term ‘online’ became popular in the late 1980s and referred
to the use of a terminal, keyboard and TV (or monitor) to access the banking
system using a phone line. ‘Home banking’ can also refer to the use of a
numeric keypad to send tones down a phone line with instructions to the
bank. Online services were introduced in New York in 1981, when four of the
city’s major banks (Citibank, Chase Manhattan, Chemical, and Manufacturers
Hanover) began to offer home banking services using the videotext system
(Kaushik, 2012:3).
In the US, Stanford Federal Credit Union (California) was the first financial
institution to offer online Internet banking services to all of its members as
from October 1994 (Shang & Dutta, 2010:2). Today, many banks are offering
Internet banking to their customers. In some cases, Internet-only banks have
43
emerged that do not maintain brick-and-mortar bank branches. Instead, they
typically differentiate themselves by offering better interest rates and online
banking features. As stated by IGI Global (2009:67), there are many reasons
why banks adopt e-banking, which include customers’ demands, selling more
to existing customers, changes in the environment, achieving a competitive
advantage, and increasing efficiency.
2.3.2 E-banking technology
According to Ravi (2011:3), banking technology refers to the use of
sophisticated information and communication technologies, together with
computer science, to enable banks to offer better services to their customers
in a secure, reliable and affordable manner, as well as to sustain a
competitive advantage over other banks. In terms of banking technology,
Ravi (2011:3) states that ‘banking’ refers to the economic, financial,
commercial and management aspects of banking, while ‘technology’ refers to
the information and communications technologies, computer science and risk
qualification and measurement aspects of banking.
During an earlier investigation of the implications of e-banking
implementation, PIU (Performance and Innovation Unit) (1999) found that
when a company has adopted a technology or application, the process of
implementation is generally effected by three types of factors, namely
technological, organisational and environmental. Technology-related factors
are associated with the characteristics of the technology/application itself,
including complexity, compatibility, and relative advantage. Organisational
factors are primarily concerned with the people involved in the
implementation within organisations, and impact on issues such as
management support, user resistance and the level of expertise available.
Environmental factors focus on the environmental context of the organisation
and include factors such as supplier-customer relationships and competitive
44
pressure. E-banking relies heavily on information and communications
technology (ICT) to achieve its promise of 24 hour availability (Bojan et al.,
2010:2).
According to the Economic Commission for Africa (2007), the growth of e-
banking in most African countries has been slow for a variety of reasons,
which include the following: low levels of Internet penetration and limited
communication infrastructures. Many Africans are still unaware of the
opportunities offered by e-banking. The major obstacles include the lack of a
suitable legal framework and security measures, inadequate banking
systems, poorly developed telecommunications infrastructures, especially
beyond urban areas, and high rates of illiteracy. Zaroyda (2009) observed
that one key reason for the slow development of e-banking in Africa is that
there is no overall policy framework covering aspects such as technical,
economic and political policy considerations, which help to create an enabling
environment.
Despite banks in developing countries having recently acknowledged the
benefits of e-banking technology in terms of improving productivity and
efficiency, some countries (i.e. Nigeria) have struggled to adopt and integrate
e-banking within their existing banking system (Khalfan & Akbar, 2006).
In some developing countries, the main problem with regard to the adoption
of new technology in the banking system is the staff, as resistance to the
adoption of technology is a common problem in the banking sector (Chan &
Lu, 2004; Constantine & Chaniotakis, 2005). The perceptions and
expectations with regard to banking technologies are a crucial element in the
development of successful e-banking implementation projects
(Lymperopoulos & Chaniotakis, 2004). If bank staff primarily consider e-
banking to be a self-service and convenient channel that decreases costs,
and if its adoption will not affect their positions, then they will more easily
45
adopt it (Nath et al., 2011). Banks should periodically reassess their sources
of technology support to determine whether a given solution continues to fit
their business plan and whether it is flexible enough to meet anticipated
future needs (Shanmugam & Supramaniam, 2011).
2.3.3 E-banking security
Security can be seen as the fact that each technology has its own way to
avoid fraud or anything which goes against the law. Shanmugam and
Supramaniam (2011) observed that security in electronic banking services is
greater than that in conventional banking services and requires more specific
attention by bank management. The security of information may be one of the
biggest concerns to Internet users. Economic and technological phenomena
such as downsizing, outsourcing, distributed architecture, client/server and e-
banking all have the goal of making organisations leaner and more efficient.
However, information systems (IS) are widely exposed to security threats, as
organisations push their technological resources to the limit in order to meet
organisational goals (Dillon & Torkzadeh, 2006).
Security behaviour can be viewed as part of the organisational culture and
may define how employees see the organisation (Koskosas, 2011). Similarly,
organisational culture is a system of learned behaviour, reflected in the level
of end-user awareness, and it can have an impact on the success or failure of
the information security process. Albrechtsen (2007) found that users
considered a user-involving approach to be much more effective for
influencing user awareness and behaviour in information security. Leach
(2003) studied influences that affect a user's security behaviour and
suggested that by strengthening the security culture, organisations may
achieve significant security gains. Debar and Viinikka (2006) investigated
security information management as an outsourced service and suggested
augmenting security procedures as a solution.
46
Electronic banking users, who most likely connect to the Internet via a dial-up
modem, are faced with the smaller risk of someone breaking into their
computers. Only organisations such as banks, however, with dedicated
Internet connections, face the risk of someone gaining unauthorised access
to their computer or network via the Internet. Nevertheless, users of
electronic banking still face the security risk of unauthorised access to their
banking accounts. Moreover, they are also concerned about non
repudiability, which requires a reliable identification of both the sender and
receiver of online transactions. Non-secure electronic transactions can be
altered to change the apparent sender. Therefore, it is extremely important to
incorporate non-repudiability, which means that the identity of both the
sender and receiver can be confirmed by a trusted third party, who holds the
identity certificates (Nasim, 2009).
Today, it is believed that people make the difference to information
technology and security development, and that training in the ethical, legal
and security aspects of information technology usage should be ongoing at
all levels within organisations (Nolan, 2005).
2.3.4 e-banking advantages and disadvantages
Gao and Owolabi (2008) identified social (culture, tradition, education),
economic (economic system, average income level) and technological
(industrial infrastructure, technological background characteristics) aspects
as key factors in the development and adoption of e-banking. It is very
important for the banker to understand the expectations of customers, as
observed by Chaffey (2009).
Electronic banking services have provided numerous benefits for both banks
and customers. The first benefit for banks offering electronic banking services
47
is better branding and improved responsiveness to the market. Those banks
that offer services such as Internet banking are perceived as leaders in
technology implementation. Rabi (2011:4) observed that the main advantage
of e-banking is a new distribution channel providing improved services to
customers, as well as the use of electronic commerce strategies.
The benefits of e-banking depend on which side one is on - banks do not
experience the same advantages as customers. The banking industry has
reaped various benefits due to the development of the e-banking system. The
main objective of every financial organisation is to boost profits for its
shareholders, and online banking services offer ideal opportunities for
increasing profits. The development of e-banking has greatly helped banks to
minimise their overheads, charges and service costs. Many routine services
and tasks have now been fully computerised and are quicker and more
efficient. The growth of e-banking has made banks more economical, and
has also led to the growth of the banking industry, with the introduction of
new opportunities for banking processes. The Internet offers a potential
competitive advantage for banks - this advantage lies in the areas of cost
reduction and increased satisfaction of customer needs (Bradley & Stewart,
2003; Jaruwachirathanakul & Fink, 2005). The Internet is the cheapest
distribution channel for standardised bank operations, such as account
management and funds transfer (Polasik & Wisniewski, 2009). The
commitment of senior management was also found to be a driving force in
the adoption and exploitation of technology (Shiels, McIvor, & O'Reilly, 2003).
According to Gettingmoneywise (2011), there are advantages to using
Internet banking for anyone who is a customer of a bank. The ability to view
statements online without having to spend money on overpriced telephone
banking calls, for example, is an obvious benefit.
Wang et al. (2003) observed that different distribution channels increase
effective market coverage by enabling different products to be targeted in
48
different demographic segments. In general, customers have been affected in
a positive manner by e-banking.
Despite the many benefits that Internet banking provides to both banks and
their customers, acceptance of this technology has not been equal in all parts
of the world (Gettingmoneywise, 2011). Security, of course, is the primary
concern for those who are wary of taking their banking online, and there have
been cases of successful breaches of some bank websites’ security.
According to Karjaluoto et al. (2002), there are also some disadvantages
associated with e-banking services, as most people do not trust transactions
which are conducted online. For beginners, e-banking can be difficult to learn,
and websites sometimes take time to load. Some websites ask for
identification, which can be very inconvenient for newcomers to e-banking.
Hackers may intercept data and defraud customers, and phone bills can
increase due to Internet usage. There is also a need for customers to have
skills to deal with computers and the Internet. For the elderly and
housewives, for example, this may make Internet banking difficult, and
website changes may result in confusion among customers and delays in
processing of transactions. As stated by buzzle.com (2011), one very
common disadvantage of online banking is when a person has some problem
or query. In a traditional bank, if one experiences a problem, one can go to an
employee of the bank to solve it. However, in the case of Internet banking,
one will find oneself making endless calls to the customer services
department.
2.3.5 E-banking challenges and barriers
While many commentators hold the view that e-commerce has many
advantages for developing countries, the African continent has a number of
major challenges to overcome before it can more fully exploit the benefits of
e-commerce (Akoh, 2001). Xiao (2010:3) opined that although the Internet
49
has created new possibilities for commercial banks, it has also opened the
door to some challenges. Banks are becoming increasingly advanced and
interconnected, offering a variety of self-service banking options online and
subscribing to global payment systems and global structures.
Shah and Clarke (2009:10) indicated that the implementation of e-banking
can have numerous barriers, such as access to the Internet, which is still
difficult in some countries, despite the fact that the growth of the Internet is
rapid. Lack of computer literacy, high cost of hardware and call charges, as
well as various social and economic factors, are some of the reasons cited for
this. With regard to Internet utilisation, Samuels (2002) stated that this is
changing fast, as more and more people connect to the Internet, and these
numbers are expected to grow even faster with the maturity of mobile
communications. Some banks have been hesitant to adopt e-banking
systems, fearing the high costs involved and that it will be difficult for them to
match the prices of competing Internet-only banks. These fears have proven
to be significant in most developed markets (Xiao, 2010:3).
Rabi (2011:5) summarised the challenges in e-banking as follows:
Lack of legal rights and electronic justification;
People don’t like to reveal their finances;
Lack of motivation and culture training;
Lack of trust by users;
Lack of security;
Lack of culture and knowledge of banks about e-banking;
Management hesitation to use experts in IT section;
Traditional attitude toward data re-engineering;
Lack of economic justification and risks involved in using e-
banking systems; and
Weakness of available facilities”.
50
In some countries of the world, especially developing countries, lack of
access to electricity is also one of the barriers to the widespread adoption of
e-banking. According to Digital Opportunities for Women (2009), socio-
economic conditions, such as poverty and illiteracy, as well as antiquated or
restrictive telecommunications policies and limited information technology
hardware and infrastructure, make it difficult for developing nations to
participate in e-commerce. Xiao (2010:3) observed that Chinese people living
in New York, especially in China Town, were not using the Internet because
of certain draw backs such as computer illiteracy, security, fraud and theft,
which deterred them from participating in e-banking.
Windrum and Berranger (2002) reported that many of the factors affecting the
successful adoption of new technologies such as e-banking is generic in
nature, and that the successful adoption of Internet technology depends to
some extent on how this is used in conjunction with the other technology and
management practices that form a ‘technology cluster’. Common barriers
include unsuitability for the type of business, enabling factors (availability of
ICT skills, qualified personnel, network infrastructure), cost factors (ICT
equipment and networks, software and re-organisation), security and trust
factors, security and reliability of the e-commerce system, uncertainly of
payment methods, legal frameworks, and intellectual property rights), and
challenges in the areas of management skills, technological capabilities,
productivity, and competitiveness (OECD, 2004). Chaffey (2009) observed
that the opportunities have to be balanced against the risks and barriers
associated with introducing or adopting e-business services, which vary from
strategic to practical risks.
Amade and Jafarpour (2009) identified various types of barriers, such as
cultural, social, legal or judicial, managerial, technical and technological
barriers. Eyni (2008) ranked barriers in an ascending order of organisational
51
factors, technical factors, managerial factors and cost factors. Furthermore,
Shukla et al. (2011), in their research on e-banking barriers, highlighted the
risks of technological change.
2.3.6 E-banking around the world
Some experiences of emerging economies with regard to e-banking provide
further insight into the foregoing discussion. E-banking has not evolved in the
same way in all countries of the world, as illustrated below.
E-banking in India
According to Gupta (2006), concerns over security and misuse of e-banking
in India have increased as more banks adopt electronic banking. The Indian
Information Technology Act of 2000, which is basically a framework law,
makes hacking a punishable offence under Section 66 of the Act. Breach of
information security in the form of hacking is implicitly recognised as a penal
offence. The ‘appropriate government’ (central/state) is empowered to
declare any ‘computer’, ‘computer system’, or ‘computer network’ as a
protected system. A ten-year prison term and a hefty fine await any person
who secures access to the ‘secured computer system’ in contravention of the
provisions of the law.
Despite the deterrence of the penal provisions of the IT Act of 2000, a lacuna
in the law is that organisations and entities can take action against those who
breach the data security procedure, but they are not obliged to implement
data security measures to protect consumers and clients. The IT Act does not
impose any such duty upon banks. In contrast, in the UK, failure to properly
undertake the identification of new customers can create an array of risks for
the bank. Under the Data Protection Act of 1998, a bank may face an action
for damages if it fails to “maintain adequate security precautions in respect of
52
the data”. Essentially, a legal duty is imposed upon the banks to use
reasonable care and skill in disseminating information to people who access
the bank’s networks, either via the Internet or by using an ATM card. In India,
a bank’s liability will arise out of contract, as there is no statute in this regard.
When liability is contractual, this means that, by virtue of the contract, the
bank is under an obligation to keep customers’ data confidential. If
transactions are done on an open network such as the Internet then, in the
case of a security breach, an Internet service provider (ISP) may be liable, in
addition to the bank. However, ambiguity persists with regard to the liability of
an Internet service provider, due to a dearth of decided case law in this
regard. The viability of a sectorial legislation on data protection in e-banking
should be investigated. India can take its cue from nations that have favoured
the ad hoc enactment of sectorial laws over omnibus legislation (Gupta,
2006).
E-Banking in China
According to Tang (2004:3), China has decided to take advantage of the
financial restructuring process and the Internet revolution in Asia. China’s
central bank has initiated and encouraged the development of Internet
banking services since 31 May, 2000. This new Internet banking system
provides 24 hour access to financial transaction services, personal financial
consulting and utility fee payments. As a large and typical developing country
with an ambition to become one of the world’s economic superpowers, China
understands the importance of EC (electronic commerce) and has made
significant efforts to develop various EC initiatives, including e-banking, within
the banking sector. Expanding from large cities such as Beijing, Shanghai
and Guangzhou to large coastal and inland cities, the Chinese EC market
has been growing rapidly and is predicted to reach $654.3 billion by 2010
(Tan et al., 2009:353).
53
In order to address the escalating competition brought about by the opening
of the banking sector to foreign participants, China’s domestic banks are
currently being proactive in devising and implementing strategies to advance
their e-banking products and services (Lu, 2005:432). The first generation of
electronic banking was introduced by the China Merchant Bank in 1997 in the
form of the Internet payment system. Other major banks followed and
introduced a similar system between 1998 and 1999 (Laforet & Li, 2005:372).
Online banking services with rudimentary functionalities such as electronic bill
payment and fund management were then gradually made available to retail
and corporate customers between 1999 and 2001. As the economy
developed further and EC activities increased, the demand for more e-
banking functionalities rose dramatically, promoting another round of e-
banking service developments among Chinese domestic banks around 2001
(Lu, 2005; CFCA, 2008). The second generation in e-banking, which
addresses the demand for increased sophistication in wealth management,
provides additional functions that will facilitate investment activities, such as
the purchase and sale of stocks, currencies and mutual funds. Meanwhile,
basic asset management functionalities such as bill payment and fund
transfer were also redeveloped to improve usability and convenience.
Strengthened security measures, such as the use of a USB security token,
known as “U Shield”, was introduced in 2002 amid widespread concern about
the reliability and security of e-banking services.
According to the latest research report on electronic banking conducted by
the China Financial Certification Authority, around 20% of bank account
holders in urban areas have adopted e-banking, while around 40% of
corporate account holders conduct their transactions online (CFCA, 2008).
Although e-banking in China has experienced a significant growth over the
past few years, it is considered to be in its early stages of development
compared to the adoption and utilisation rates for e-banking in the developed
nations (Zhao, 2008:370; Rotchanakitumnia, 2003:317). Major problems
54
impeding the growth of e-banking include the lack of a standard legal system,
the inability to develop a technology infrastructure at a pace compatible with
China’s e-banking development needs, and low acceptance of e-banking by
the Chinese community in general (Laforet & Li, 2005; Zhao, 2008).
E- Banking in Nigeria
In Nigeria, electronic banking products are increasingly gaining ground, as
many customers view them as a panacea for the problem of poor service
delivery that has bedevilled many banks for a long time. However, experts
posit that the rate at which Nigerians accept the products is far below
expectations. According to Bello and Dogarawa (2007:7), this is due to a lack
of awareness about the products, inadequate legal framework, and low
technology. In order for the new delivery channels to succeed, both e-banks
and the regulatory authority in Nigeria have to sensitise the public towards e-
banking.
E- Banking in Ghana
According to Adams and Lamptey (2009:15), the banking industry in Ghana
is undergoing rapid growth, with the liberalisation of the financial sector by the
Bank of Ghana and a positive economic environment. The Bank not only
introduced universal banking but also introduced the Ghana interbank
payment and settlement system, there by establishing common electronic
platforms for payment across financial institutions (Bank of Ghana, 2008).
Many products and services are now a matter of competition necessity rather
than a competitive advantage (William et al., 2005). With many banks offering
similar products and services, the focus of competition is now moving
towards speed, customisation of products and services, and the opening up
of more branches (branch banking) to add value to core banking products
and services (Abor, 2004).
55
Ghana is nevertheless one of the African countries with the lowest Internet
patronage, with only 1.8% of the country’s population accessing the Internet
(Internet World Statistics, 2008). The full impact of the Internet has not been
felt in Ghana yet, especially in commerce and banking.
E- Banking in Libya
Abukhzam and Lee (2010:4) observed that the Libyan banking industry is
under increasing pressure to improve its banking services. The increasing
demand from the international banking community is placing significant
pressure on Libyan banks to be electronically active (Libyan investment,
2007). Moreover, the large distances between Libyan banks has created the
urgent need to connect the headquarters with their branches electronically,
rather than handling cash and paper manually (CBL, 2007). Amongst the
Arab nations, Libya has the reputation for having the finest bankers but the
worst banking services (Libyan investment, 2007). E-banking technology has
not yet found its way to Libya’s banking sector (Libyan News and Views,
2007). Basic electronic banking facilities, such as automated teller machines
(ATMs) and telephone banking, are limited in Libya and more interestingly,
Libyan banks are still relying on manual banking methods to conduct their
daily banking activities (Libyan News and Views, 2007). Therefore, the
adoption of e-banking facilities is essential for Libya’s economic reform.
Despite the rapid development of Libyan IT and telecommunications, the
adoption of technology in the Libyan banking industry in general is limited
(Libyan News and Views, 2007). The Libyan banking industry has been
utilising information technology mainly at the branches for accounting
practices or operating procedures, including interest calculations and
balancing of books (CBL, 2007). Thus, ICTs are primarily used in Libyan
banks for basic internal, operational and clerical purposes (e.g. typing, sorting
customer files, and processing paperwork in the back office), as well as to
56
facilitate work processes and to manage documents that cannot be done
manually.
E-Banking in South Africa
Wu (2009:47) mentioned that, according to the South Africa Yearbook for
2003/2004, at the end of December 2002, 42 banks (including 14 branches of
foreign banks and two mutual banks) were registered with the Office of the
Registrar of Banks. Furthermore, 52 foreign banks had authorised
representative offices in South Africa. Currently, four major groups dominate
the South African banking sector, namely Amalgamated Banks of South
Africa (ABSA) Group Limited, Standard Bank Investment Corporation Limited,
First Rand Holdings Limited (FNB) and Nedcor Limited (NedBank). These
groups maintain extensive branch networks across all nine provinces, and
together own 82% of the total assets (R 1 101 billion) of the banking sector.
They all offer Internet banking services.
South Africa’s banks started doing business via the Internet in 1996. They
had a fairly slow start, but consumers responded because it is convenient,
safe and cheap. ABSA Bank was the first to offer limited transactions online
in late 1996, and this was followed by Nedbank, which began to offer a full
banking service early in 1997. By July 1997, Standard Bank and FNB had
added their working sites to the web and in August 1997, the newest player,
Mercantile Bank, joined the online banking community.
According to Botha (2002:22), ABSA Bank predicted a South African Internet
population of 3.2 million by the end of 2002, and planned to recruit 10 000
new users to the service each month. The bank offered its own free Internet
access in order to encourage the use of the Internet and Internet banking.
The offer included five e-mail addresses and 10 mega-bytes of free web
space. At the time, ABSA hoped that the publicity surrounding the service
57
would generate sufficient interest in Internet banking to double their customer
base. In a syndicated banking study, an update on a study conducted in May
2000 that tracked the potential to use the Internet for financial transactions,
Karin (2002:1) reported that roughly 672 000 people were banking online in
South Africa. Consumer acceptance and use of Internet banking is still far
lower in South Africa when compared to other countries such as the UK. In
2005, there were 7.8 million Internet banking users in the UK. The number of
people using Internet banking services more than doubled from 2000 to
2005,when there were 3.5 million users logging on to Internet banking
services.
South Africa is now exposed to global market forces because of technology
and the lifting of sanctions. Banks will need to focus their attention both at
home and abroad and use technology to their best advantage (Green and
Van Bellen, 2002:2).
E-Banking in the USA
Many factors may impact the development of the e-banking industry,
including social (culture, tradition, education, etc.), economic (economic
system, average income level) and technological (industrial infrastructure,
technological background) factors. As such, there is a huge gap between the
developed nations (such as USA and European countries) and developing
nations (such as China and African countries) in terms of the development of
the e-banking industry (Gao and Owolabi, 2008). In the USA, there were
220,141,969 Internet users as of June 2008, i.e. a 72.5% penetration (Yang &
Cheng, 2009:5). Herington & Weaven (2007) indicated that online service
quality has no direct impact on customer delight, e-trust or the development
of stronger relationships with customers, but it does have an impact on e-
loyalty. Their research also indirectly explained the shift within households to
using online banking services. For example, in 2003, 91% of US households
58
held bank accounts, and 93% of those used at least one option of electronic
transfer of funds with their account (Kolodinsky & Hogarth, 2004). Fest (2007)
pointed out, however, that only 40% of US households took advantage of e-
banking services, whereas over 50% of households had not been attracted
yet to e-banking, because those customers might have had a bad experience
with a self-service site (Swann, 2008). The winners in the e-banking industry
are those banks that are able to successfully increase their offerings while
simultaneously enhancing security measures and getting customers to
believe in them (Rombel, 2006). In addition, for all e-banking customers,
customer satisfaction is affected not only by banks’ service quality, but also
by their cultural features (Levesque and McDougall, 1996).
E-banking has far been developed more in developed countries than in
developing countries. From the description seen above many factors have
brought up the adoption level of e-banking in those countries who are already
developed and the same factors which are not yet enhanced in developing
countries is slowing down the evolution of that new technology in developing
country.
2.4 Summary
In a world that is becoming increasingly globalised through the use of the
Internet, Internet banking is gaining ground as a new opportunity for banking
institutions. From a Cameroonian perspective, consumers are slow to adopt
Internet banking, and only a small percentage of banking clients in this
country have thus far opted to use Internet banking services. Very little
research has been conducted in Cameroon to determine what factors
influence consumer adoption of Internet banking. Clearly, there is a need for
research on this topic. This chapter, which is a combination of research
findings from around the world, is primarily a study of consumer behaviour
and the factors which impact on this behaviour, particularly when the
59
consumer is faced with the uncertainty of adopting life-changing innovations
such as e-banking or Internet banking. This chapter started by defining
theories and findings obtained by other researchers on the adoption of e-
banking and customer acceptance of innovation. This provided a foundation
on which the remainder of the chapter was built, and which paved the way for
a description of the three dominant factors that affect consumer behaviour.
The first of these factors (consumer perceptions of and attitudes towards
Internet banking) was broken down into its various facets, namely relative
advantage, compatibility, complexity, perceived cost, and perceived risk.
Clearly, consumer perceptions and attitudes are interrelated, entirely
subjective and can be changed. The second factor (consumer demographic
characteristics) demonstrated that age, gender, educational level, income
and occupation are the demographic categories which are most influential in
shaping consumer behaviour. The third factor (social influences on the
adoption of e-banking) examined the influence of reference groups on
consumer adoption of innovative products such as e-banking. Many of the
factors discussed have an impact on the adoption of Internet banking and
need to be studied in the Cameroonian context. Conversely, banks should
also consider whether or not they are fully exploiting those factors which
positively influence the adoption of Internet banking.
After discussing the theories which are applicable to this study, the topic of e-
banking or Internet banking was explored in this chapter. This was done by
reviewing published studies that trace the rapid progression from the humble
origins of the Internet to its development, e-banking technology, e-banking
security, advantages and disadvantages of e-banking, e-banking challenges
and barriers, and finally, e-banking around the world.
In terms of the main objective of this study, which is to identify the factors
affecting the adoption of e-banking in Cameroon, this can largely be achieved
60
through the lens of the innovative diffusion theory, by exploring how attitudes
and demographic characteristics influence the adoption of e-banking in
Cameroon.
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CHAPTER. 3. RESEARCH DESIGN AND METHODOLOGY
3.1 Introduction
This chapter presents the research design and methodology used in this
study. Naidoo (2006:64) stated that methodology is a description and
analysis of methods chosen, as well as their limitations and resources, and
outlines their assumptions and consequences. This chapter aimed to
describe the research method used. It started with an explanation of the
primary and secondary research, followed by an overview of the respondents
who participated in the primary research. It also highlights the procedures
used in designing the questionnaire such as questionnaire translation,
negotiation for entry into a specific bank’s sample, ethical considerations, and
the pre-testing of the questionnaire. It also explores issues of population and
sample size, as well as method used to collect and analyse data. Lastly, it
highlights some challenges encountered while conducting this study.
3.2 Research design
A research design is a plan for selecting subjects, research sites, and data
collection procedures to answer research question(s) (McMillan &
Schumacher, 2006:117). McMillan and Schumacher maintained that the goal
of a research design is to provide results that are judged to be credible. The
main task of a research design is to specify and combine the key elements
and methods in such a way as to maximise validity (Blanche, Durrheim and
Painter 2006:133). The rationale for a research design is to help the
researcher to plan and structure a research project in such a way that the
eventual validity of the research findings is maximised through either
minimising or, where possible, eliminating potential error (Mouton, 1996:108).
62
A research design focuses on the end product or the research logic and
problem.
According to Brink and Wood (1983:252), the function of the overall
framework which guides a research is to create conditions for the collection of
data in a manner that intends to combine relevance of the research purpose
with economy in methodology. Moreover, the aim of a research design is to
provide valid and accurate answers to the research question (Dzivhani,
2000:11).
The qualitative research approach attempts to capture human experiences,
which is what this study intends to do. Hollaway and Wheeles (in De Villiers,
2004) refer to qualitative research as a form of social inquiry that focuses on
the way in which people interpret and make sense of their experiences and
the world in which they live. The research design for this study was therefore
qualitative, as the researcher was of the opinion that qualitative research was
best suited to explore matters such as people’s experiences with regard to e-
banking. A combination of both exploratory and descriptive methods used,
because the area under study was intended to explore people’s subjective
experiences and behaviour. Hence, the qualitative approach was used, since
the aim of the study was to determine human behaviour and experience with
regard to e-banking in Cameroon. This approach was chosen in order to
provide in-depth information about banks and customers’ perceptions and
experiences in terms of e-banking.
According to the distinction made by Hoberg (1999:26), as well as by Glaser
and Strauss (1965:261), a research design is more closely aligned with
inductive building of theory, as opposed to deductive testing or extension of
theory. Each aspect of the research design is outlined below with specific
reference to the approach used in this study.
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3.2.1 Qualitative research
Qualitative research emphasises the dynamic, holistic and individual aspects
of the human experience and attempts to capture those aspects in their
entirety, within the context of those who are experiencing them (Hungler and
Polit, cited in Mathebula, 2000:24). It includes the identification, study and
analysis of subjective and objective data in order to understand the internal
and external worlds of people (Mathebula, 2000:24). The qualitative design
facilitates flexibility and will enable people to describe their perceptions from
their own frame of reference (Lewin, Stephens, and Vuliamy, 1990:11).
(Hoberg, 1999:51) emphasised that qualitative approaches are used when
the researcher seeks to develop an understanding of human phenomena and
to investigate the meaning given to events that people experience. This study
involved interaction with the Internet banking user and the banks that adopt
new technologies, in order to understand why banks in Cameroon are not
embracing all these innovations and why some customers are still not
adopting e-banking.
In light of the above, the qualitative design was deemed most appropriate for
this study. It enables the researcher to enter the life worlds of the participants
(De Vos et al 1998:80). In this study, the researcher employed a qualitative
research design, because it does not give step-by-step instructions and a
fixed recipe to follow. The design is flexible and may change during the
research process. More than one method of data collection was used in this
study, including in-depth interviews (IDIs), questionnaires and observations.
This is known as the triangulation of data sources, and this helped improve
the trustworthiness of the data.
Observation was chosen as a method because its emphasis is on discovering
the meanings that people attach to their actions. In terms of this method, the
64
researcher attempted to participate fully in the lives and activities of the
subjects being studied. This enabled him to share their experiences by not
merely observing what was happening, but by also feeling it. Observations
involve watching people and situations, recognising and noting what is going
on, rather than merely asking for information.
IDIs were used because it helps the interviewer to better understand the mind
of the interviewed and also the interviewer has the possibility to can go
deeper in some questions. The questions resemble questionnaires in their
purpose, but they allow for greater depth of responses such as emotions,
experiences and feelings. This is the main reason why interviews were used
in this study.
This study relied on the questionnaire as the key method of data collection,
because it identifies and captures questions about a subject. For this
particular study, a questionnaire was designed and consisted of both closed-
ended and open-ended questions. The questionnaire method presented
questions as a guide and enabled respondents to only give back to the
researcher what will be helpful for the research. In terms of resources, the
questionnaire was cheaper to administer than having to interview all the
customers in the sample.
3.2.2 Exploratory research
Research is viewed as exploratory when it is situated in a relatively unknown
research area or an area about which little is known (De Vos et al.,
1998:124). This is suited to this study, which attempted to gain insight into
why banks in Cameroon are not embracing e-banking and what the level of
adoption of e-banking is by bank customers. This was a relatively unexplored
area of research, especially in the Cameroonian context. The exploratory
nature of this study enabled the researcher to not only share in the
65
understanding and perceptions of customers and bank managers as
participants in the study, but to also explore and acquire knowledge on how
they structured and gave meaning to this aspect in their daily lives.
3.2.3 Descriptive research
A descriptive study provides a detailed description of the phenomenon under
investigation in order to answer the research question (Brink & Wood,
1983:91). In this study, after the empirical investigation, the researcher
described the lived experiences of customers and bank staff with regard to e-
banking in terms of how they viewed the factors that influenced their rejection
or acceptance of e-banking. The descriptions were predominantly textual and
narrative. As Mathebula (2000:25) mentioned, the goal of qualitative research
is to document and interpret, as fully as possible, the totality of whatever is
being studied in particular contexts from the people’s point of view.
3.3 Research methodology
Research methodology refers to the measuring instrument(s) by means of
which accurate data about specific phenomena can be obtained (Mouton,
1996:125). It is a systematic, methodical and accurate execution of the
design (Mouton, 2001:55).
A research design uses various tools and methods to perform different tasks.
In this regard, a variety of methods are used for data collection, including
surveys, interviews, group discussions, direct observation and Participatory
Rural Appraisal (PRA) or Participatory Learning Appraisal (PLA) tools
(Roche, 1999; Mouton, 1996 & Mouton, 2001). For the purposes of this study,
a number of instruments which were used fall in the category of group
discussions, according to Roche (1999:116), while according to Mouton
66
(2001:105), these instruments fall in the interview category. The methods that
were used included key informant interviews and questionnaires.
The interviewer in this case has more opportunities to probe further in order
to clarify issues and get more information from participants at the same time.
However, this does not mean that the tools do not have their own
shortcomings.
Two different sets of data, namely qualitative and quantitative data, were
collected for this study. Qualitative data was generated mainly by using
closed-ended questions. These types of questions do not provide much room
for the respondent to express his/her views, as they provide prescribed
options for selection. However, these questions require less time to
administer and enable the interviewer to ensure that all questions are
responded to. In the study, there was a deliberate attempt by the researcher
to gather information about the adoption of e-banking.
3.4 Secondary data collection
Secondary data collection entails reviewing all available documentation on
the subject under study. As argued by Mouton (2001:86), it is essential that
every research project begins with a review of the existing body of
knowledge. In this study, the secondary data collection involved reviewing all
available literature on e-banking. The literature was used to gain an
understanding of e-banking in general, the perceptions of customers in
Cameroon regarding e-banking, and the reasons why not all banks in the
country are embracing e-banking. The literature review was also used as a
basis for the theoretical framework of this study. This literature was reviewed
at two levels, namely published and unpublished literature. Once the data
was collected, processed and published, it was made available for use by
other people as secondary data. It is therefore important to know the
67
originator, as well as when and how the data was collected, in order to
appreciate its reliability. All secondary data concerning e-banking in
Cameroon and abroad was used to obtain information on how far the banking
industry has progressed in terms of implementing e-banking services (Emma,
2009; Alawneh and Hattab, 2009; Wikipedia, 2011). Published articles about
the adoption of e-banking (Nazim, 2009; Mols, 1999; Mattila et al., 2003),
together with other analyses by experts in books, were also used to capture
the general feeling and attitudes of bank customers with regard to e-banking
in Cameroon.
3.5 Primary research
Skimmer and Ivancevich (1992) defined primary data as information collected
for the first time and specific to the study. Primary data is collected through
experiments, observations and surveys to address the specific research
objectives. In this study, the researcher used interviews and questionnaires
as data collection methods. He delivered and collected the client
questionnaires at the bank branches and proceeded to interview two of the
managers of each of the selected banks. The researcher opted to deliver all
the questionnaires by himself, in order to ensure that the maximum number of
questionnaires would be filled in. In addition, he conducted the interviews
himself, in order to ensure the reliability of the responses.
3.6 Questionnaire design
Methodological triangulation was used to collect the required data during this
study. As explained by Harricombe (1993:508), methodological triangulation
entails studying something from various angles and perspectives. It is where
information obtained from two or more techniques is cross-checked to
enhance the quality of the data (Chambers, 1994: 256). Although this helps to
68
strengthen the study’s design, one should not adopt a naïve, optimistic view
that the aggregation of data from different sources will quickly add up to
produce a more complete picture (Harricombe, 1993:508).
A structured questionnaire, adapted and modified, as used by Divya and
Padhmanabhan (2009), was used as the main data-gathering instrument in
this study (refer to Appendix A). The questionnaire was divided into two parts.
Part 1 helped to capture information about the banks being investigated, such
as the number of branches nationwide and the adoption and usage of e-
banking services. This part was answered by the bank managers during an
interview with the researcher. In the same part, the researcher tried to
determine the perceived benefits of e-banking and the nature of the
challenges faced in the adoption and usage of e-banking from the bank’s
perspective. Part 2 of the questionnaire aimed to determine the perceptions
regarding e-banking from the customer’s perspective, the nature of the
challenges faced by bank customers in the use of e-banking, and the level of
literacy in terms of information technology, telecommunications and Internet
usage.
The questionnaire included both open-ended and closed-ended questions.
However, there were more closed–ended questions than open–ended
questions. This was in order to ensure that the respondents were given an
opportunity to provide the information needed by the researcher. Open-ended
questions were also used to enable the researcher to clearly identify the
respondents' perceptions and observations.
3.6.1 Questionnaire translation
After some discussions on the questionnaire it was decided that
questionnaires would be translated in French. This was because in
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Cameroon the majority of the population speak French even if the country is
officially a bilingual country with French and English as official languages.
The respondents had the choice on the language suitable for them to
understand. This was done with a lot of care to ensure that the meaning of
the questions would remain the same. This was in consideration with the
advice by World Vision International (2002:13) and others, who said that
proper care must be taken in translating questions to ensure that the meaning
of questions is not changed, as this may also change the data to be collected.
The translation of the questionnaires into French has also its own
advantages. Firstly, it ensures that questions are asked consistently each
time, resulting in getting consistent information from all respondents. Using
the participant’s own language is also a proper way of ensuring community
participation in an unlimited way (World Vision International 2002:13).
Furthermore, Fanning (2005:1) indicates that well-translated survey questions
make it easier for respondents to read and respond, which, after all, is one of
the key goals in using them (Bradburn, Sudman, & Wansink 2004). If
respondents find the research questions easy to read and follow, then the
response rate will greatly improve. In addition, well-translated questionnaires
reduce the measurement error, as respondents will be more likely to follow
through, and less likely to overlook some questions (Dillman, 2000). That is
why Dillman (2000) asserts that people’s motivation to respond to
questionnaires is vested in their comfort ability in the language being used as
this meets some of their social needs in a way.
However, one major limitation with translation is that if inaccurate work is
done, then the meaning of the questions may be completely changed. This is
why the researcher submitted the questionnaire to a sworn translator for
translation. The second limitation is that it increases study time since
additional time is allocated for questionnaire translation (Bradburn, Sudman,
70
& Wansink 2004); it is for this reason that the researcher referred to a sworn
translator to avoid wasting time.
3.6.2 Negotiating for entry into the community
Before the pre-testing of the questionnaire was done, the researcher
requested a discussion with one of the managers of the bank selected.
Discussions were conducted on an agreed date where the researcher
described the background of the study and how it was to be conducted. The
researcher indicated to the manager that the study was meant only for
learning purposes and not for any profit and therefore participants to the
study would not receive any material or financial support for participating in
the study. This was done to ensure that participants to the study are prepared
well in advance so that they do not have high expectations for their
participation.
After a discussion on the purpose of the study and its impact on the banking
industry as well as in the country of Cameroon, the researcher was advised
to send written documentation. A letter was then sent to the general manager
(see appendix D) who authorised the researcher to conduct interviews with
the people from the bank.
3.6.3 Ethical considerations
The methodology of this research incorporated issues related to research
ethics and trustworthiness, sampling, data collection and processing, and
literature consulted. Ethics refers to discussions around what is considered
acceptable or justifiable behaviour in the practice of social research. It is
concerned with what is considered to be fair ways for the researchers to
proceed (Makhanya 2006:28). Mauther, Birch, Jessop,& Miller (2002:20)
pointed out that ethics is the application of general rules and principles, and
71
the researcher’s internalising of moral values. De Vos et al.(1998:24), define
ethics as a set of moral principles, which offers behavioural expectations
about the most correct conduct towards participants. The researcher was
aware that at every stage of this research process, he would be confronted
with ethical issues to resolve. Some of these ethical issues would be
straightforward, while others would not. The researcher would therefore have
to be continually ethically aware, and to always consider, inter alia, the
interests of the participants (Angus 1998:111). The following ethical
measures were considered throughout this research.
The researcher asked for consent from the general manager of each
bank to conduct research at the institution.
Each participant in the study was informed of the purpose of the study
and time required for participation.
Participants were assured that their views and opinions as given freely
in interviews and in their answers to the questionnaire would not be
identified by anyone else. Subjects were not deceived about the goal
of the study.
Participants were assured that their views, responses, and opinions
would be treated in the strictest confidence, which would not be
violated. Although these views were coded in terms of general
themes and patterns, certain opinions and views were stated
verbatim, the name of the participant who provided the specific view
or opinion was not mentioned, and on completion of the project, the
researcher rectified any misunderstanding that arose in the minds of
the respondents.
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The researcher made sure that all the above ethical measures were taken
into consideration throughout the study. This assurance naturally included a
guarantee of the researcher’s competency (De Vos, Strydom, Fouché &
Delport 2005:63), which naturally included a correct and professional
relationship with the participants, which in turn meant gaining their informed
consent and briefing them if necessary (De Vos et al.,2005:63). The ethical
clearance for the research was first done at the University of South Africa to
ensure the condition on which the research will be done (Refer to Appendix
E).
3.6.4 Questionnaire pre-testing
It has been strongly argued by some researchers (Dillman 2000; Bradburn et
al. 2004) that pre-testing is important to the success of any survey. They
indicate that questionnaires ought to be pre-tested to identify potential
problems in intent, clarity and navigation. On the other hand, additional time
and resources are required to carry out pre-tests of any survey. According to
Dillman (2000), this calls for additional time to plan, carry out the pre-test and
analyse the findings to identify any shortfalls. In the same manner, it calls for
additional resources, which some researchers may possibly not be able to
afford.
In order to ensure that quality data is gathered for the study, the
questionnaire was pre-tested with three separate customers from the area of
research (Cameroon). This helped to identify areas that may have been
difficult for the interviewers and interviewees during the interaction. Various
issues were noted after the pre-tests. Firstly, it was revealed that three
questions required reviewing because they proved to be difficult for the
respondents. In addition to the modification of these three questions, there
was a need to increase the list of options for three of the closed-ended
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questions in the original questionnaire. The review of the questionnaire was
done soon after pre-testing. All these contributions were incorporated into the
final questionnaire used for the actual data collection.
3.6.5 Population and population size
The targeted population was 15 banks in the country which are respectively
EcoBank, Afriland FirstBank, SGBC( Société Générale des Banques du
Cameroun), Standard Chartered Bank of Cameroon, UBA(United Bank of
Africa), UBC (Union Bank of Cameroon), Atlantic Bank of Cameroon, BICEC
(Banque Internationale pour l’Epargne et le Credit), CitiBank, SCB
Cameroon, NFC Bank ( National Financial Credit of Cameroon), Amity Bank
of Cameroon, CBC (Commercial Bank of Cameroon), Attijarawa Bank,
Oceanic Bank of Cameroon and Ecobank of Cameroon. All the customers
and managers of these banks constituted the research population. In
Cameroon, the banking industry is now controlled by five principal banks,
according to “Jeune Afrique Economie” (2010), which are: BICEC, SGBC,
Afriland First Bank, SCB Credit Lyonnais and Ecobank. The headquarters of
these banks are in Douala and Yaoundé which are the economic and political
capitals of the country respectively. The resume of the bank environment is in
Table 3.1 below
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Table 3.1 Bank environment in Cameroon
No List of Banks in Cameroon Headquarters
1 Afriland first Bank Yaoundé
2 SGBC (Société Générale des Banques du
Cameroun)
Douala
3 Standard Chartered Bank Yaoundé
4 UBA (United Bank of Africa) Douala
5 UBC(UnionBank of Cameroon) Douala
6 Atlantic Bank Douala
7 BICEC (Banque Internationale du Cameroun pour
l’épargne et le Crédit)
Douala
8 NFCB (National Financial Credit Bank) Yaoundé
9 Ecobank Douala
10 Oceanic Bank Douala
11 CBC (Commercial Bank Cameroon) Yaoundé
12 SCB (Societe Camerounaise des Banques) Yaoundé
13 Attijarawa Bank Douala
14 Citibank Douala
15 Amity Bank Douala
Source: Jeune Afrique Economique (2010)
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3.6.6 Sampling
As alluded by Mouton (2001:132) sampling is part of our daily life. It is the
process of selecting a few things or objects from a bigger group (the sampling
population) when we do not have knowledge of the larger collection of these
objects. These become the basis for estimating or predicting a fact, situation
or outcome regarding the bigger group. Blanche et al. (2006:133) explains
that sampling is the process of selecting cases to observe. It is a known fact
that time and resources may not allow us to do research that covers
everyone, that is why sampling is chosen as a way of doing research. Though
opponents of sampling argue that the process does not offer us an
opportunity to find out the facts about the population, it saves time as well as
financial and human resources. In this study, sampling was conducted to
select the required cases to be included in the survey. The sample is
representative of the population, which is achieved by selecting the sample
randomly, or where it is not possible a convenient or purposeful large sample
is one alternative.
3.6.7 Sample design
There are a number of sampling designs that researchers use depending on
the purposes of the study. Some of these include random sampling, non-
random sampling and mixed sampling designs. This study used
random/probability sampling designs. This is a procedure in which every
member of the population has an equal chance of being selected (Mouton
1996:138). Random/probability sampling is good because it helps to remove
the possibility of investigator bias in the selection of cases. As recommended
by Wright (1982) in Mouton (1996:139) “It is often our only route to eliminate
bias. In addition, through the process of random selection independence is
guaranteed and the principles of probability theory may be applied to
estimate the accuracy of samples” (Mouton 1996: 139). The technique used
76
in the determination of our sample in this study is described below in the
sampling design:
3.6.8 Sampling techniques
In carrying out this research, random sampling designs were used. Under this
category, there are a number of techniques that can be used. Some of these
methods include random walk, staged random sampling; cluster random
sampling, simple random sampling, purposive random sampling, judgmental
random sampling, and stratified or systematic random sampling (Blanche et
al., 2006:134). In this study, two random sampling procedures were applied,
which are purposive random sampling and judgmental random sampling
procedures. This was done to ensure that every bank in the area has an
equal chance of being selected. This was in line with recommendation made
by Mouton (1996:138) who indicated that random sampling according to its
very nature is unbiased in terms of selection. Blanche et al. (2006:133) add
on to say that random sampling implies that each element in the sampling
frame has an equal and independent chance of being selected for the
sample. They argue, however, that random sampling can be a very laborious
process and is seldom used in practice.
The researcher made use of purposive and judgmental random sampling
procedures using a list of all the banks sourced from the secondary data and
the ministry of finance in Cameroon. From the population illustrated in Table
3.1 the sample drawn up is shown in Table 3.2 below.
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Table 3.2 Bank sample of the study
No List of Banks Headquarters
1 Afriland First Bank Yaoundé
2 SGBC (Société Générale des Banques du
Cameroun)
Douala
3 Standard Chartered Bank Yaoundé
4 UBA (United Bank of Africa) Douala
5 BICEC (Banque Internation du Cameroun pour
l’épargne et le Crédit)
Douala
6 Ecobank Douala
7 CBC (Commercial Bank Cameroon) Yaoundé
Source: Jeune Afrique Economique (2010)
3.6.9 Sample size
Sample size refers to the number of electors from whom the required
information can be obtained (Mouton 1996:139). Size of sample has a
bearing on research results. It is generally true that, as the size of the sample
increases, the degree of error or bias reduces, and the opposite is also true
(Mouton 1996:139). In order to reduce the level of bias or error, the
researcher used a sample size that is proportional to the size of elements
under study.
78
In this study it was done in line with the advice by some researchers
(Chadwick, Bahr & Albrecht 1984:68, Blanche et al. 2006:134), who indicated
that researchers have developed a rule-of-thumb in as far as the sampling
ratio is concerned. Blanche et al. (2006:134) argue that small populations of
less than 1000 require a sampling ratio of at least 30%. This is required to
ensure accuracy and validity of the data to be gathered. The banks that will
constitute the sample of the research are BICEC, SGBC, Standard Bank,
Atlantic Bank, Afriland First Bank, Ecobank, and United bank of Africa.
BICEC and SGBC were chosen because they are state banks; Afriland First
bank was selected because among the private banks in Cameroon it is the
one which is really innovative in terms of e-banking products; Ecobank has
been chosen because it is present in many countries in Africa (18 countries)
and it is useful to understand the way he is operating in Cameroon. United
Bank of Africa is also present in many countries in Africa, but was selected
because it is the newest entrant in the financial market of Cameroon and has
already proved its strength of security in e-banking in Nigeria. Standard Bank
was selected because it belongs to a huge group which is present in many
countries in Africa and even in Europe. SCB Credit Lyonnais has been also
chosen because it belongs to a huge group of French-owned banks.
The survey sample consisted of two segments (managers of the banks and
customer or clients of those banks) that differ in the usage and adoption of e-
banking products due to their diverse backgrounds. To this end, the
researcher set a goal to sample at least two managers of each bank and
hundred customers per bank. The managers of banks were asked to fill-in the
questionnaire during the interview, while some other questions not mentioned
on the questionnaire were asked to them (see in the Table 3.3). The branch
managers and relationship officers were asked to pass the questionnaire on
to their clients so that all customers could have the same chance of
participating in the survey. These managers were chosen due to their
constant interaction with the bank’s customers on a day-to-day basis. Bank
79
branches are scattered all over the main cities of the country, and it could
have been expensive for the researcher to visit all those branches around the
country. For that reason, the branches used were situated in two principal
cities, namely Yaoundé and Douala, which are the political and economic
capitals respectively of the country and where the headquarters of those
banks are situated.
Table 3.3: Other questions asked to managers during the interview
Number Questions
1 Do you even recruit if the person is qualified but doesn’t have any
knowledge in ICT?
2 Do you think the lack of acceptance of e-banking is due to a lack
of communication?
3 Do you think accessibility to Internet is a problem in the adoption
of e-banking?
4 Is e-banking legislation based on the reality of bank customer’s
life in the Cameroon?
5 Is there a minimum amount that customers should have before
doing e-banking transactions?
6 Is it possible to make a deposit using the ATMs in Cameroon?
7 What is your general impression about e-banking in Cameroon?
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3.6 Data analysis
According to Yin (1994), the ultimate goal of analysing data is to treat the
evidence fairly, to produce compelling analytical conclusions, and to rule out
alternative interpretations. In another sense, data analysis is seen to consist
of three concurrent flows of activity (Huberman, 1994). These three are data
reduction, data display, drawing of conclusions, and verification.
Data reduction refers to the process of selecting, focusing, abstracting, and
transforming the raw data. Data display refers to an organized assembly of
information that permits conclusions. Deductions and conclusion was drawn
from the data to decide what things mean from the beginning of data
collection.
Tables were constructed to organise and display the data; information was
analysed and grouped to facilitate discussion on the key findings. A set of
recommendations emerged after the data analysis was completed. This study
being largely qualitative research, the type of data analysis that can be used
is the deductive method. All the raw data collected during the research in
Cameroon was transformed into usable information using the SPSS
informatics programme (see in appendix C). The data was then analysed
using graphics, diagrams, and statistics to interpret the questions one-
banking in Cameroon and give recommendations according to the findings
and interpretation of information collected.
3.7 The role of the researcher
The main instrument in qualitative studies is the researcher (Henning, 2004:
6). Kilbourn (2006: 9) suggests that it is important to be aware of one’s
subjective self and the role that this subjective self plays in research, since
being aware is better than assuming we can get rid of the subjectivity.
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Being aware of his subjective self in this study, the researcher was aware of
the qualities that enhanced his research and those that could have skewed
his interpretation of data if he were not aware of them. His personal history
includes more than 3 years as service manager in a sales branch and being
responsible for being in contact with customers in the field of work and
collecting data in this field to analyse and elaborate the different strategies of
sales. Kilbourn (2006: 9) elaborates that the way in which we see and
respond to a situation, and how we interpret what we see will bear our own
signature. This unique signature should not be a bias but a way of providing
individuality to a situation. In this study, the researcher realised that the
language and active listening skills he had previously developed in his
leadership roles were very applicable to interview settings.
3.8 Validity and reliability
Reliability, according to a definition by Hussey & Hussey (1997:57), is
concerned with the findings of the research, and is one aspect of the
credibility of the findings. Reliability has to do with whether the evidence and
the conclusions drawn stand up to the closest scrutiny. The accuracy of the
measurement depends on the consistency of the measurement. In the case
of this study, the same questionnaire was distributed to all respondents at the
same time, to ensure reliability. Because the positivistic paradigm focuses on
the precision of the measurement and the ability to be able to repeat the
experiment reliably, there is always the danger that the validity would be very
low as a result. In other words, if the reliability is high the validity can be low.
During the research process, this study followed the validity framework
(Mouton, 1996:111) in order to ensure validity at different stages. The sample
chosen for this reseach represent the population in the way that we have two
banks which represent the public banks (BICEC and SGBC), five banks
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which represent the private sector where one is a private national bank
(Afriland First Bank) and the other four are private foreign-owned (UBA,
Standard Bank, SCB Credit Lyonnais and Ecobank). Sometime during the
research we had to explain questions to the respondents in order to let them
better understand before they answered. However, the data gathered was
used to confirm consistency. Inter-item correlation was used in order to
determine the reliability of the items contained in the questionnaire. In order
to ensure reliability of information gathered, the researcher conducted the
interviews of bank managers by himself, and personally administered the
majority of the customer questionnaires.
3.9 Limitations of the study
In the country of Cameroon, it is always easier to get information from
enterprises than from the banking industry. Information regarding bank
income, bank security measures and/or ATM design for example is
confidential banking information. Should such information be made available
for public access, it could pose a serious threat to the banking industry by
effectively providing a “manual” for criminal minds. As a direct consequence
of this, it became difficult for the researcher to ask in-depth information about
the evolution of the income, the total deposit collected by the bank and also
the supplier of the bank security. They were not able and somewhat unwilling
to give out detailed information regarding the income related to the bank each
year before and after adopting e-banking, e-banking security measures, or
information regarding e-banking safety, which play a major role in the
customer’s trust of the new service offered. Some respondents were not
willing to provide information, fearing that it would to be used in-house to their
disadvantage. However, an assurance was given to the respondents that the
information would be kept confidential to protect them and that the research
study would be made available to the respondents for their benefit. The
83
researcher dispatched did the questionnaire only in the bank branches in the
two main towns of the country, namely as Yaoundé and Douala, and this was
because of the time and financial limitation and also because these banks
have most of their branches in these two towns (refer to appendix B).
3.10 Summary
Questionnaires and interviews were the two research instruments employed
in this study. A desk and in-depth review of both unpublished and published
data assisted in obtaining secondary data. These different choices of
methodology were made because of the reliability, validity, time, and cost
constraints. In this chapter the qualitative research approach, design, and
methodology were presented. The main area of the study was the banks in
Cameroon. The participants were purposively selected. Because the study
focuses on the bank industry, the population of the study included staff and
customers of those selected banks.
The literature showed that qualitative research was suitable for the present
study, which is concerned with the experiences of the workers in the bank
industry and the customers of that industry, which is a social phenomenon.
Clearly the choice for qualitative study is linked to the type of inquiry that a
researcher conducts. Qualitative methods were found suitable to the present
study, which also focused on organisational process, outcomes, and an
understanding of individual and group experiences in adopting e-banking in
Cameroon. One of the main concerns of this study was to describe the
experiences of the people involved in the banking system in Cameroon, and
to decide, on the basis of their experiences, how successful the
implementation of e-banking has been.
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CHAPTER. 4. DATA ANALYSIS AND DISCUSSION OF FINDINGS
4.1 Introduction
This chapter presents the data analysis and a discussion of the findings of
this study. The researcher conducted qualitative, descriptive research to
investigate various aspects related to the adoption of e-banking by banks and
bank customers in Cameroon.
4.2 Findings from the managers’ interviews
Response rate
The researcher’s expectation was to get responses from two managers of
each of the seven banks which were surveyed (which is 14 managers).
However, not all 14 managers were available to be interviewed, but 11 out of
the 14 managers were interviewed, which represents 79% of the total. The
responses collected from each bank are shown in Table 4.1 below.
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Table 4.1: Responses collected from the banks
BANK Responses
AFRILAND FIRST BANK 2
ECOBANK CAMEROON 2
SGBC 2
BICEC 2
CBC 1
STANDARD CHARTERED BANK
OF CAMEROON
1
UBA 1
TOTAL 11
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DESCRIPTIVE ANALYSIS OF FINDINGS
Demographic characteristics
Table 4.2: Demographic characteristics of respondents
Demographic
characteristics
Interval Frequencies Percentages
Gender Male 9 82%
Female 2 18%
Age 25-40 1 09%
41-50 4 36%
51 and above 6 55%
Occupation Director 4 36%
Manager 7 64%
Educational
level
Primary 0 0%
Secondary 0 0%
High school 0 0%
Undergraduate 4 36%
Postgraduate 7 64%
From the table above, it is clear that 82% of the interviewees were male,
while only 18% were female. Most of them were above 51 years of age
(55%), managers (64%) and had at least university-level education. Males
are clearly dominant in the management field.
Most of them were old because it takes time to advance in a financial
institution and they therefore reach the highest level when they are older than
45 years. They were also very well-educated. In an attempt to explore
enablers and inhibitors of e-banking technology adoption, managers and
directors were asked questions related to the factors that impact on their
attitude and willingness towards the implementation of an e-banking strategy
87
in their bank. From their responses, it is evident that most of the financial
activities take place in the main cities. Banks prefer to do business in Douala
and Yaoundé, which is why most of their bank branches are located there.
Furthermore, during the interview it was noted that all of them had already
implemented e-banking. They stated many reasons for implementing this new
technology, such as cost reduction, improved quality and efficiency, the ability
to be more competitive, and attracting new customers. All of them mentioned
that there had not been too many changes since the implementation and that
they needed to know which factors influence customer s’ adoption of e-
banking.
On the one hand, the interviews showed that there are many negative
influences within the Cameroonian banking system that act as obstacles to
the adoption of e-banking, but on the other hand, the managers indicated that
not all of these were considered to have the same degree of severity, and
some were seen as more fundamental than others. The following represents
the findings in relation to the interviewees’ perceptions regarding the key
factors enabling or hindering the adoption of e-banking.
4.2.1 Managerial and Organisational Factors
The factors discussed below were highlighted in the structured interviews
with bank managers.
Resistance to change
A large number of respondents viewed the change from legacy banking to
electronic banking as a threat. For instance, managers indicated that most
bank employees expressed anxiety over the implementation of e-banking and
emphasised their perceived inability to cope with the new technological
88
responsibilities. They also expressed fear of job loss, losing autonomy and
control, as well as the fear of uncertainty. Manager interviewees believed that
resistance to change by bank employees is the main barrier to the adoption
of e-banking technology in Cameroon. During the interviews, one of the
interviewees asserted that the majority of their bank tellers were relatively
content with the way in which the business was being run. For that reason,
they did not particularly want the introduction of any new technology that
would change the way in which their daily activities were performed.
Lack of IT knowledge and awareness
This was reported by all interviewees to be a key problem. Participants
pinpointed a lack of awareness of new technology, deficiencies in computer
use, fear of computers, and the low level of technological education among
the workforce and senior management. As one participant, director of the IT
Department, mentioned, “Lack of awareness and understanding of our bank
managers and employees about e-banking and its benefits is the main
reason why our bank has been struggling to implement the system at the
projected time”. This lack of understanding (especially in relation to IT jargon)
was also a concern raised by the bank’s IT staff. Interviewees indicated that
ignorance of software language is a key barrier to e-banking in many
Cameroon banks, as noted by the IT director, who stated the following: “IT
language is a main barrier preventing our bank from adopting e-banking
technology.”
Clearly, the lack of know-how and general IT expertise comprises one of the
biggest obstacles to the adoption and diffusion of e-banking technologies.
The IT director, who had the necessary expertise, made a judgment about
the bank’s readiness and was of the opinion that this was not simply a
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problem with the lower level workforce, but extended to senior management
as well.
Lack of a strategic plan
This was reported to be a hindrance by some of the interviewees, who felt
that Cameroonian banks have the financial ability to really benefit from the
adoption of e-banking technology, but because of the lack of a clear national
strategy, there is a knock-on effect which has slowed down the technology
adoption rate. In this respect, bank managers stated that they did not have a
national strategic plan for the adoption of technology in general and e-
banking in particular, due to the fact that senior officials of the government
had not yet realised the value of e-banking technology, and it is therefore not
yet seen as a priority by the government. This was somewhat in contradiction
to a comment made in relation to another response, when one manager said:
“Our government is supporting the change and adopting the latest
technology available on the market and providing the entire basic
infrastructure needed for its adoption … our government provides the
costs of importing hardware, software, and expertise to promote and
encourage the use of e-banking technologies in many banks that
cannot afford such costs”.
Lack of E-laws and legislation
The unavailability of e-legislation was a main concern for all the interviewees.
In this regard, one participant expressed his reservations by saying that he
was very conservative when it came to using electronic systems, despite his
knowledge of IT and Internet security. The problem was that the system in
Cameroon did not protect him yet, so he had to take care of his own safety.
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Accordingly, this study found that even within this small segment of society,
the absence of e-legislation was seen as the main barrier to the improvement
of e-banking in Cameroon. In this regard, the development of proper e-
legislation was viewed as being crucial to the adoption of e-banking, since the
absence of this would inevitably discourage people and businesses from
going online.
4.2.2 Technological Issues
Unavailability of a proper telecommunications infrastructure
This was raised by many interviewees as a crucial barrier to the
advancement of e-banking technologies. They revealed that despite the
many plans to enhance the country’s ICT infrastructure, many participants felt
that it was still deficient and that integration between banks was poor. Thus,
the technological infrastructure in Cameroon was not up to the standard
required to support the use of modern banking technologies.
With regard to the lack of key resources, identified as the next obstacle to the
adoption and diffusion of e-banking technology, comments were made
related to Cameroon’s stage of development, which revealed a lack of native
expertise in e-banking technologies. The lack of skilled local professionals in
advanced modern technology results in a reliance on expensive foreign
expertise.
Shortage of IT training courses
Several bank managers complained that courses were too short, were not
sufficiently advanced and covered only the basics of computer literacy, and
that they were not always held at a convenient time which meant that it was
not always possible for them to attend these courses.
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4.3 Findings from the Customers’ Questionnaires
Response rate
The researcher’s expectation was to get responses from 100 customers of
each of the seven banks surveyed. This would constitute a total of 700
customer responses. However, the total number of usable responses was
511, which represented 73% of the total. The responses collected from each
bank are shown in Table 4.3 below.
Table 4.3: Responses from the banks
BANK Number of completed
questionnaires
AFRILAND FIRST BANK 89
ECOBANK CAMEROON 72
SGBC 51
BICEC 84
CBC 78
STANDARD CHARTERED BANK OF
CAMEROON
69
UBA 68
TOTAL 511
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4.3.1 Descriptive analysis of demographic characteristics
This section of the sub-chapter presents the results in relation to gender, age,
income, level of education and occupation.
GENDER
Figure 4.1 below presents the responses according to gender. 69% of the
respondents were male and 31% were female, which is two-thirds and one-
third of the sample respectively. This could be a rough indication that in
Cameroon, males use banking services more than females.
Figure 4.1: Gender of respondents
figure,4.2 below shows the responses of users and non-users of e-banking
according to gender.
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Figure 4.2: Gender of e-banking users and non-users
Based on the above, it appears that there are slightly more male users of e-
banking than female users. However, it is not easy to conclude that gender
has a significant impact on e-banking adoption. Later in this chapter, the chi-
square test was used to determine whether or not gender influences the
adoption of e-banking.
Age
Figure 4.3 below shows the responses according to age. 45% of the
respondents were 26-35 years old, while customers older than 50 years old
represented only 9% of the respondents. On the basis of this figure, one can
conclude that the majority of bank customers are young.
Figure 4.3: Age of respondents
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Figure 4.4 below shows the responses of users and non-users of e-banking
according to age.
Figure 4.4: Age of e-banking users and non-users
Figure 4.4 above shows that the majority of users (51%) are relatively young,
which suggests that young people are more likely to adopt e-banking than
older people. The frequency of users between the ages of 18 and 35 is higher
than the frequency of non-users, while from 36 years and older, the
frequency of users is lower than the frequency of non-users. Later in this
chapter, the chi-square test was used to determine the significance of this
finding. Nevertheless, this finding is consistent with the observation by
Paddachi et al. (2005) that the younger the generation, the greater the
likelihood that they will be used to new technological advancements, as
compared to the older generation. Thus, young people are more likely to
adopt e-banking than the older population.
Level of Education
Figure 4.5 below shows the responses according to level of education. One
can see that 80% of the respondents have primary and secondary school
education to a maximum of high school level, while only 20% have at least a
university level (undergraduate and postgraduate) of education. From the
95
figure above, it is apparent that nearly 90% of bank customers have a
secondary and higher level of education.
Figure 4.5: Level of education of respondents
The analysis of users and non-users of e-banking according to the level of
education is presented in Figures 4.6 and 4.7 below.
Figure 4.6: Responses of users and non-users of e-banking according to level of education
(below university level)
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Figure 4.7: Responses of users and non-users of e-banking according to level of
education (university level)
One can observe in both figures 4.6 and 4.7 that from primary to high school
level (below the university level), non-users of e-banking are dominant.
However, from undergraduate level upwards (university level), users of e-
banking are far more dominant than non-users. This shows that there is a
positive relationship between the level of education and the use of e-banking.
The more educated one is, the more one is e-banking. This finding is
consistent with the observation by Paddachiet al. (2005) that the higher the
education level attained, the greater the probability of the customer adopting
Internet banking. However, the significance of this relationship will be tested
later in this chapter using the chi-square test.
Monthly income
Figure 4.8 below shows the monthly income of respondents. The greater
number of respondents earn between 250 000 and 500 000 FCFA.
97
Figure 4.8: Distribution of respondents’ incomes
Figure 4.9 below shows the distribution of users and non-users of e-banking
according to monthly income.
Figure 4.9: Distribution of users and non-users of e-banking by income
Figure 4.9 above illustrates the income disparity between users and non-
users and indicates that monthly income seems to be a major factor affecting
the use of e-banking. This follows an inverted U or Bell-curve (non-users on
the right side) distribution i.e. concentration in the middle of graph. On the
98
non-users’ side, the peak is at the interval CFAF 250 000 to 500 000 fcfa,
while on the users’ side, the peak is at the interval CFAF 500 000-1000 000,
which means that users earn more than non-users. People earning higher
salaries are therefore more likely to adopt e-banking than people earning
less.
In Cameroon, lower income earners are mostly civil servants, while higher
income earners are mostly those employed in the private sector. It is
important for high income earners to use e-banking because of the size of
transactions involved and the convenience afforded by e-banking. A survey
conducted by Karjaluoto (2002) in Finland showed that income has a major
effect on the adoption of e-banking, as users were found to have much higher
incomes than non-users. Paddachiet al. (2005) similarly observed that the
higher the income level, the more affluent the people and the more likely they
are to possess a personal computer, and thus to use e-banking.
Occupation
Figure 4.10 below shows that the majority of sampled respondents were
employed in the private sector.
Figure 4.10: Occupation of respondents
99
Figure 4.11 and Figure 4.12 below show that those working either in the
private sector or in the public sector are more likely to use e-banking than
others. Karjaluoto (2002) observed that those who use online services are
well educated and have better occupations than non-users.
Figure 4.11: Distribution of users and non-users according to occupation
100
Figure 4.12: Distribution of users and non-users according to occupation (workers)
4.3.2 Analysis of Responses
Computer usage
Figure 4.13 below shows that over two-thirds of the respondents use a
computer. This is an indication that the majority of the respondents are
computer literate, perhaps not expert but at least able to understand the
basics. Therefore, the environment is favourable for adopting e-banking.
101
Figure 4.13: Computer Usage
The place where they learnt to use a computer
From table 4.4 below, one can observe that respondents learn to use the
computer at home (38%), in specialised centres (28.7%) where they have a
teacher, at school (20.5%) and at work (12.8%). It would seem there are no
barriers to becoming computer literate in Cameroon.
102
Table 4.4: Place where they learned how to use a computer
Place where they learned to use a
computer
Percentage
School 20.5
Home 38.0
Specialised centre 28.7
Work 12.8
Respondents’ use of the Internet
Figure 4.14 below shows that 70% (357) of respondents use the Internet,
while 30% (154) do not. Thus, there is a high usage of the Internet among
respondents, which is almost equal to the usage of computers (76%).
Ordinarily, this should translate into a high usage of e-banking. However,
consumer perceptions and attitudes can also play a role in the use of a
product or service. According to Davis (1989), consumers‘ perceptions of
technological innovations such as e-banking may not only be influenced by
their socio-economic and demographic characteristics, but also by their
perceptions of specific technologies and the characteristics of different
products and services.
103
Figure 4.14: Respondents’ use of the Internet
The place where they use the Internet
Table 4.5 below shows the different places where respondents use the
Internet. Most of the respondents using the Internet are doing so in Internet
cafés (44%), at work (32%), at home (21%), and in other places (3%).
Table 4.5: Places where respondents use the Internet
Places where they use the Internet Percentage
Home 21%
Workplace 32%
Internet café 44%
Other places 3%
104
Frequency of Internet usage
Figure 4.15 below shows how often respondents consult the Internet for
anything, not necessarily e-banking. A quarter of the respondents (25%) use
the Internet every day, while a third (31%) use it once every week, 8% once
every month, and 36% at other times (periodically).
Figure 4.15: Internet usage frequency
Possession rate of mobile phones
Mobile phones are now a channel for electronic banking and therefore the
usage alone is a reliable indicator of having a tool for e-banking. Figure 4.16
below shows the possession rate of mobile phones among the respondents.
One can observe that almost all respondents possess a mobile phone (94%),
while only a few of them (6%) do not. This means that it is quite easy to
obtain a mobile phone in the country. The high usage of mobile phones is
conducive to the adoption of mobile phone banking by banks. However, it
remains to be seen whether banks and their customers will leverage mobile
phones for e-banking. The next sub-section examines actual e-banking
usage.
105
Figure 4.16: Possession rate of mobile phones
4.3.3 Electronic banking usage
This sub-section examines the actual knowledge of e-banking among
respondents, the source of such knowledge, and the proportion of
respondents who actually use e-banking. The researcher also examines
factors which block and encourage the adoption and use of e-banking.
Knowledge of e-banking among respondents
Figure 4.17 below shows the level of knowledge with regard to e-banking.
Most respondents know of the existence of e-banking in the country, as over
80% indicated their awareness of it.
106
Figure 4.17: Percentage of respondents with knowledge of e-banking
Table 4.6 below indicates where they heard about e-banking.
Table 4.6: Source of knowledge on e-banking
Place Percentage
TV, radio and newspaper 12%
Internet 31%
Bank branch 42%
Friends 9%
Others 6%
It is evident that the bank branch (42%) is the most effective means of
promoting e-banking, followed by the Internet (31%), television, radio, and
newspapers (12%), friends (9%), and other media (6%). Figure 4.18 below
shows the level of use of e-banking, which is only 14%. While many
respondents know about e-banking, they do not use it, perhaps for reasons
that is discusses later in this chapter.
107
Figure 4.18: Percentage of e-banking users
Table 4.7 below indicates the usage of the different e-banking services in the
country.
Table 4.7: Usage of different e-banking services
E-banking services Percentage
ATMs 38%
Phone Banking 13%
Internet Banking 27%
Electronic Fund Transfer 6%
SMSBanking 16%
Total 100%
Most respondents use ATMs (38%), followed by Internet banking (27%), SMS
banking (16%), phone banking (13%) and finally electronic fund transfer
(7%). Nasri (2011) found that in Tunisia, the services that are offered are
ATMs, phone banking, Internet banking, and SMS banking. The findings are
108
consistent with the observations made by Foon and Fah (2010) in their study
which was conducted in Malaysia.
Factors hindering the use of e-banking
The respondents who do not use Internet banking (441) gave the following
reasons for not using this facility, as shown in table 4.8 below. A total of 134
(30%) respondents indicated that they do not trust e-banking services; 92
respondents have not heard about e-banking services; 38 (9%) respondents
do not know how to use the services or the tools linked to that service, such
as computers; 58 (12%) feel that there is no security in e-banking, 60 (14%)
believe that e-banking is not easily accessible, 42 (10%) feel that the cost of
the Internet is too high, and 17 (4%) are of the view that they do not need e-
banking. This is more or less consistent with Nasri’s (2011) observation that
the principal reasons preventing customers from adopting e-banking in
Tunisia are lack of knowledge, the weak level of security, ethical
considerations, lack of trust, and accessibility.
109
Table 4.8: Factors hindering the use of e-banking
Factors Yes Percentage saying
Yes (%)
Lack of trust 134 30%
Lack of knowledge 38 09%
Accessibility 60 14%
High cost of the Internet 42 10%
No need 17 04%
Not heard about it 92 21%
Security 58 12%
TOTAL 441 100%
Factors encouraging the use of e-banking
As shown in table 4.9 below, a total of 104 (17%) respondents indicated that
they would like free access to the Internet, 134 (23%) indicated that they
would like to be trained on how to use electronic services, 98 (17%) would
like the cost to be reduced, 159 (27%) would like the security to be enhanced,
and 92 (16%) would like the service quality to be improved. In general, most
of the respondents had one or more things that, if changed, might encourage
them to use e-banking services. Wu (2009), in his research in South Africa,
found that factors which can encourage the use of e-banking are free skills
training, enhanced security, and more communication about e-banking.
110
Table 4.9: Factors encouraging the use of e-banking
Factors Yes Percentage
Saying Yes
(%) Free Internet access 104 17%
Free skills training 134 23%
Reduction of cost 98 17%
Enhanced security 159 27%
Improved service
quality
92 16%
TOTAL 587 100%
Frequency of e-banking usage by respondents
Figure 4.19 below illustrates the frequency of e-banking usage by
respondents. Most respondents (36%) use e-banking once a month; some
(27%) use it infrequently (19); some (19%) use it about once a week; some
(14%) more than once a week; and only a few respondents (4%) use it every
day. Research conducted in South Africa by Wu (2009) found that 31% of
respondents use e-banking services once a week, 45% use it more than two
times a week, 10% once a month, 13% daily, and 1% use it infrequently.
This indicates that in Cameroon, people do not use e-banking services very
often.
111
Figure 4.19: E-banking usage frequency
4.3.4: Perception of e-banking
The following sub-sections report on responses to questions concerning
attitudes and perceptions towards Internet banking. These were collected
through questions in the form of a Likert scale, where responses ranged from
strongly agree to strongly disagree.
Does e-banking save time?
In order to achieve a better understanding of the responses, the researcher
grouped the Likert scale questions into 3 groups (Agree, Neither Agree nor
Disagree (NAD) and Disagree). Figure 4.20 below shows that 51% of the
respondents agreed that e-banking is much better than traditional banking
because of the time that it saves. Previous research by Fox (2006) supports
this finding, suggesting that consumers may be motivated to use some e-
banking facilities because they can save time by not having to visit a branch
and wait in a long queue. This is a very important motivation for using Internet
banking. Figure 4.20 also shows that 43% of non-users agreed that e-
banking can be time-saving, while all the users agreed that e-banking is time-
saving.
112
Figure 4.20: E-banking saves time
Is e-banking better than branch banking?
Figure 4.21 below shows that 40% of the respondents agreed that e-banking
is much better than traditional banking. Figure 4.21 also shows that 73% of
users agreed that e-banking is better than branch banking, while 35% of non-
users agreed. This result is in accordance with previous research. Marhana
(2012) observed that consumers may view e-banking as better than branch
banking because it saves time, reduces transfer costs, and transactions can
be carried out from home.
113
Figure 4.21: E-banking is better than branch banking
The compatibility of e-banking
Does e-banking suit your lifestyle?
This question probed customer perceptions regarding the impact that Internet
banking has on lifestyles and the influence that this has on willingness to use
Internet banking. Figure 4.22 below shows that 44% of the respondents
agreed that Internet banking suits their lifestyle. It also shows that 62% of
users agreed, whereas 31% of non-users agreed that Internet banking suits
their lifestyle. On the non-users' side, there were 53% who disagreed,
whereas on the users' side, only 18% disagreed.
114
Figure 4.22: E-banking suits your lifestyle
Does e-banking make banking more convenient?
This question aimed to determine if Internet banking is perceived to be
convenient by the respondents and whether or not this influences its usage.
Figure 4.23 below shows that a total of 30% of respondents agreed that
Internet banking makes banking more convenient. As can also be seen, 69%
of users agreed, while 24% of non-users agreed that Internet banking makes
banking more convenient. In addition, most of the non-users were neutral
(neither agreed nor disagreed). Research conducted in Estonia by Kerem
(2001) found that the most important factors in adoption of Internet banking
are, first and foremost, better access to banking services (convenience).
115
Figure 4.23: E-banking makes banking more convenient
The complexity of e-banking
Are e-banking services easy to use?
Figure 4.24 below shows that 39% of all the respondents agreed that e-
banking is easy to use, while only 27% disagreed. On the other hand, 89% of
users agreed that e-banking is easy to use, while 30% of non-users thought
that e-banking would be easy to use. Most of the non-users did not consider
e-banking to be very easy to use.
116
The perceived cost of e-banking
Figure 4.24: E-banking is very easy to use
This is examined from two angles –the cost of using the Internet and the cost
of utilising e-banking.
Is Internet use cheap?
Figure 4.25 below shows that a total of 46% of the respondents agreed that
Internet use is very cheap, while 26% disagreed. A total of 89% of the users
agreed that Internet use is very cheap, while only 27% of non-users had the
same opinion. Half of the non-users and 11% of the users found the Internet
not to be cheap to use.
117
Figure 4.25: Internet usage is very cheap
Is e-banking cheap?
Research mentioned earlier shows that adoption will be driven by the
perceived costs and benefits inherent to the particular innovation (Ching and
Ellis, 2004:414). As shown in Figure 4.26 below, a total of 35% of the
respondents agreed that e-banking is very cheap, while 49% did not. The
figure also reveals that 64% of the users agreed that e-banking is very cheap,
while 23% of the non-users agreed. Most non-users (55%) felt that the cost of
e-banking is not cheap, while only a few users (17%) agreed with this.
118
Figure 4.26: E-banking usage is cheap
The perceived risks of e-banking
Is it safe to do transactions through e-banking services?
This question investigated consumer beliefs about the safety of e-banking. A
total of 21% of the respondents believed that it is safe to bank online, while
57% did not. Figure 4.27 below shows that 48% of the users agreed that e-
banking is very safe, but only 18 % of the non-users considered e-banking to
be safe. The figure also reveals that 57% of the respondents do not think
that banking online is safe. Surprisingly, 35% of users and 61% of non-users
felt that e-banking is unsafe.
119
Figure 4.27: E-banking is very safe
Is banking at the branch safer than banking via the Internet?
A total of 60% of the respondents believed that banking at the branch is safer
than Internet banking, while 25% of them did not. Figure 4.28 below shows
that users (43%) agreed that banking at the branch is safer than Internet
banking, while non-users (62 %) agreed that banking at the branch is safer
than Internet banking. On the users’ side, it was found that 48% of them did
not agree that banking at the branch is safer than online banking, while 22%
of non-users had the same opinion.
120
Figure 4.28: Banking at the branch is safer than via the Internet
Social influences on the decision to adopt e-banking
Does the family influence the decision to adopt e-banking?
Figure 4.29 below shows that 50 % of all respondents agreed that their
decision to adopt e-banking is influenced by their family, while 29% of them
disagreed. A total of 70% of the users and 31% of the non-users agreed that
their family influenced them with regard to their decision to adopt e-banking.
On the other hand, 18% of users and 49% of non-users did not feel that the
family had an influence on their decision to adopt e-banking.
121
Figure 4.29: Family influence on the decision to adopt e-banking
Do friends and colleagues influence the use of e-banking?
Figure 4.30 below shows that 54 % of the respondents agreed that friends
and colleagues influence their attitude towards the adoption of e-banking.
Most of the users (82%) and 49 % of non-users agreed that friends and
colleagues can influence their attitude towards adopting e-banking. This
result is consistent with previous research (Yuan et al., 2010; Aslam et al.,
2011) on the way in which friends and colleagues influence an individual’s
adoption of e-banking. Users are more likely to be influenced by friends and
colleagues than non-users. This assertion will be tested later in this chapter.
122
Figure 4.30: Friends and colleagues’ influence on the decision to adopt e-banking
4.4 Hypothesis testing using non-parametric tests
To determine the relationship between e-banking adoption and variables
such as demographic characteristics, customer perceptions of e-banking and
social influences on e-banking adoption, the researcher used two types of
tests, namely the Mann-Whitney U test and the Chi-square test.
The Chi-square test was used to determine the significance of the
relationship between e-banking adoption and demographic variables,
completed by Phi for the 2*2 contingency table and Cramer’s V test for the
other contingency table, in order to show the strength of that relationship. On
the other hand, the Mann-Whitney U test was used to compare the means of
two groups of cases to test whether or not the means of one variable in the
two groups of respondents is significantly different. In particular, the Mann-
123
Whitney U test was used to analyse perceptions regarding the use of e-
banking between users and non-users.
TESTING HYPOTHESIS H1: THERE IS A RELATIONSHIP BETWEEN
CUSTOMERS’ DEMOGRAPHIC CHARACTERISTICS AND THE
ADOPTION OF E-BANKING.
Gender
The cross-tabulation (Table 4.10) presented below shows the usage of e-
banking according to gender. It can be noted that most of the users were
male (74%). The p-value of the Chi square test is 0.032, which is less than
0.05 (Table 4.11). This implies that the Chi-square is significant and that
there is a relationship between gender and the adoption of e-banking. The
results therefore point to an acceptance of the hypothesis that gender
influences the adoption of e-banking.The Chi-square test shows there is a
relationship between gender and the adoption of e-banking, but in order to
show the strength of that relationship, one has to interpret the value of Phi,
which is 0.04, as seen in Table 4.11. The value of Phi=0.04, which is
between -0.3 and 0.3, indicates that there is some association between
gender and the adoption of e-banking. Gender therefore does have an impact
on the use of e-banking. This conclusion is consistent with research by Hill
(2004), who also found that gender influences the adoption of e-banking, and
with the study by Khalil and Pearson (2007) in Tunisia, which found that
fewer women engaged in Internet banking than men. Chen and Wellman
(2004) focused on Internet banking usage in China, Germany, Korea, Italy,
Japan, Mexico, UK, and USA, and found that men were more likely than
women to use Internet banking.
124
Table 4.10: Cross-tabulation Chi-Square test – relationship between gender
and the use of e-banking.
Gender e-banking usage
Yes
e-banking usage
No
Total
Female
Respondent Count
Expected Count
% Within Category
18
21.6
26%
140
136.4
34%
158
158
31%
Male
Respondent Count
Expected Count
% Within Category
52
48.4
74%
301
304.6
66%
353
353
69%
Total:
Respondent Count
% Within Category
70
13.7%
441
86.3%
511
100.0%
Table 4.11: Chi-Square Test – relationship between gender and the use of Internet
banking
Value Df Asymp. Sig. (2-sided) Exact Sig. (2-sided) Exact Sig. (1-sided)
Pearson Chi-
Square
1.029a 1 .032
Continuity
Correction
.766 1 .038 Likelihood Ratio 1.059 1 .003 Fisher's Exact
Test
.033 .019
Linear-by-Linear
Association
Phi
1.027
0.04
1
.011
N of Valid Cases 511
a. 0 cells (0.0%) have expected count less than 5. The minimum expected count is 21.64.
b. Computed only for a 2x2 table
125
Age
The cross-tabulation in table 4.12 below shows the age distribution between
the two different groups. The p-value of the Chi square test is 0.016, which is
less than 0.05 (table 4.13), implies that it is significant and indicates that there
is a relationship between age and the adoption of e-banking. The results
therefore point to the acceptance of the hypothesis. In order to complete this
result, it is necessary to interpret the Cramer’s V value for this case, which is
0.2405 in the contingency table 4.13, and this value shows that there is a
weak association between age and the use of e-banking. The data analysis
suggests that age has an impact on the use of e-banking, and in the case of
Cameroon, it has been noted that people in the age group from 26 to 35
years old are more likely to adopt e-banking, because this is the age group
which makes most use of new technology. These findings are in line with
previous studies, which found that most of the Internet banking subscribers
belong to a younger generation and the chance of its adoption among older
people is low (Wand et al., 2003; Yuan et al., 2010). The findings of
Stoneman (2006:4) show that the greatest concentration of computer owners
who have banked online in the USA are in the 18 to 34 year age group and
represent 64% of the market.
126
Table 4.12: Age and the use of e-banking: cross-tabulation
Age E-banking
usage
Yes
E-banking usage
No
Total
18-25
Respondent Count
Expected Count
% Within Category
20
8.4
29%
41
52.6
10%
61
61
12%
26-35
Respondent Count
Expected Count
% Within Category
36
32
51%
194
198
41%
230
230
45%
36-50
Respondent Count
Expected Count
% Within Category
11
24
16%
163
150
38%
174
174
34%
50- more
Respondent Count
Expected Count
% Within Category
3
6
4%
43
40
10%
46
46
9%
Total:
Respondent Count
% Within Category
70
100%
441
100%
511
100%
127
Table 4.13: Chi-Square Tests: relationship between age and the use of
Internet banking
Value Df Asymp. Sig. (2-sided)
Pearson Chi-Square .940a 3 .016
Likelihood Ratio .996 3 .002
Linear-by-Linear Association
Nominal Cramer V
.068
0.2405
1 .194
N of Valid Cases 511
a. 0 cells (0.0%) have expected count less than 5. The minimum expected count is 6.30.
Income
The cross-tabulation in Table 4.14 below shows e-banking usage and non-
usage according to income distribution. The p-value of the Chi square test is
0.026, which is less than 0.05 (Table 4.15), and this implies that the Chi-
square is significant and that there is a relationship between income and the
adoption of Internet banking. The hypothesis that there is a relationship
between income and e-banking adoption is therefore accepted. In this case,
the Cramer’s V value is 0.4763, as shown in Table 4.15, which shows that
there is a moderate association between income and the adoption of e-
banking. Income does influence the adoption of e-banking, but the
association is moderate, with most users (51%) earning an income of
between 500 000fcfa and 1000 000fcfa. On the non-users’ side, 44% of this
group earned between 250 000fcfa and 500 000fcfa, and 28% between 100
128
000 and 250 000fcfa. These results imply that typical e-banking users have a
high income. These findings are consistent with previous studies by
Karjaluoto (2002) and Aslamet al. (2011), which showed that income had a
significant effect on the adoption of Internet banking. Thus, Internet banking
users earn a higher income than non-users. It has been observed that the
adoption of Internet banking is high among middle and upper income groups,
as compared to low income groups (Laforet& Li, 2005; Yuan et al. 2010).
Choudrie and Dwivedi (2005) also confirmed that the economic status of
individuals influences their ability to own a computer and use a technology
such as Internet banking.
Table 4.14: Income and the use of e-banking: cross-tabulation
Income
E-banking usage
Yes
E-banking usage
No
Total
0 – 100 000fcfa
Respondent Count
Expected Count
% Within Category
1
6.3
1%
45
39.6
10%
46
46
9%
100 000 – 250 000fcfa
Respondent Count
Expected Count
% Within Category
6
17.5
9%
122
110.5
28%
128
128
25%
250 000 – 500 000fcfa
Respondent Count
Expected Count
% Within Category
12
28
17%
192
176
44%
204
204
40%
500 000 – 1000 000fcfa
Respondent Count
Expected Count
% Within Category
36
15.3
51%
76
96.7
17%
112
112
22%
129
1000 000fcfa - More
Respondent Count
Expected Count
% Within Category
15
3
21%
6
18
1%
21
21
4%
Total:
Respondent Count
% Within Category
70
100%
441
100%
511
100%
Table 4.15: Chi-Square Tests: relationship between income and the use of
Internet banking
Value df Asymp. Sig. (2-sided)
Pearson Chi-Square 2.050a 4 .026
Likelihood Ratio 1.959 4 .043
Linear-by-Linear Association
Nominal Cramer V
1.093
0.4763
1 .196
N of Valid Cases 511
a.1 cells (10.0%) have expected count less than 5. The minimum expected count is 2.88.
Educational level
The cross-tabulation in table 4.16 below indicates the usage and non-usage
of e-banking according to educational level. The p-value of the chi square test
is 0.009, which is less than 0.05 (table 4.17). This implies that the chi-square
is significant and that there is a relationship between educational level and
the adoption of e- banking. The results therefore point to the acceptance of
the hypothesis that there is a relationship between demographic
130
characteristics and the adoption of e-banking. Table 4.17 shows that the
Cramer’s V value is 0.5493, which indicates that there is a strong association
between educational level and the adoption of e-banking. Users were
generally more educated, with 31% having had education up to
undergraduate level and 41% up to postgraduate level. Non-users were less
educated, with 43% having had education up to the secondary level and 31%
up to the high school level. In conclusion, the data analysis suggests that
educational level has an impact on the adoption of e- banking, and that in
Cameroon, people with a university level of education are more likely to adopt
e-banking than those without . The influence of educational level is consistent
with observations by Yuan et al. (2010), who found that the level of education
has a very significant impact on the adoption of e-banking. As the educational
level increases, the likelihood of adopting e-banking also increases. This
result is also in line with a study by Polatoglu and Ekin (2001:164), who found
that affluent and highly educated groups generally accepted changes more
readily, making them the most likely group of consumers to adopt Internet
banking. This was based on sample information gleaned from their survey of
Internet banking customers, which revealed that 82% of users had at least an
undergraduate level of education.
131
Table 4.16: Educational level and the use of e-banking: cross-tabulation
Educational level E-banking usage
Yes
E-banking usage
No
Total
Primary school
Respondent Count
Expected Count
% Within Category
5
8
7%
56
53
13%
61
61
12%
Secondary School
Respondent Count
Expected Count
% Within Category
5
27
7%
195
173
43%
200
200
39%
High School
Respondent Count
Expected Count
% Within Category
10
20
14%
137
127
31%
147
147
29%
Undergraduate
Respondent Count
Expected Count
% Within Category
22
8
31%
39
53
9%
61
61
12%
Postgraduate
Respondent Count
Expected Count
% Within Category
28
6
40%
14
36
4%
42
42
8%
Total:
Respondent Count
% Within Category
70
100%
441
100%
511
100%
132
Table 4.17: Chi-Square Tests: relationship between educational level and
adoption of e-banking
Value Df Asymp. Sig. (2-sided)
Pearson Chi-Square 2.529a 4 .009
Likelihood Ratio 2.722 4 .005
Linear-by-Linear Association
Nominal Cramer’s V
.725
0.5493
1
.125
N of Valid Cases 511
a. 0 cells (0.0%) have expected count less than 5. The minimum expected count is 5.75.
Occupation
The p-value of the Chi square test here is 0.000, which is less than 0.05
(table 4.19), which implies that the chi-square is significant and that there is a
relationship between occupation and the adoption of e-banking. In this case,
the Cramer’s V value is 0.3102 (table 4.19), which means that there is a
moderate association between e-banking adoption and occupation. The
cross-tabulation (table 4.18) shows the occupation distribution between the
two different groups, namely users and non-users. Users were working either
in the public sector (33%) or in the private sector (60%). From these tables, it
can be concluded that in Cameroon, working people are more likely to adopt
e-banking than non-working people. Furthermore, the results imply that
typical e-banking users are mostly in the private sector. This is consistent
with other research findings (Karjaluoto, 2002:359), which reveal that
occupation has an impact on the usage of e- banking, and that users are
generally well-educated and have better occupations than non-users.
133
Table 4.18: Occupation and the use of e-banking: cross-tabulation
Occupation E-banking usage
Yes
E-banking usage
No
Total
Student
Respondent Count
Expected Count
% Within Category
2
2
3%
75
76
17%
77
77
15%
Worker Public Category
Respondent Count
Expected Count
% Within Category
23
16
33%
80
103
22%
103
103
23%
Worker Private Category
Respondent Count
Expected Count
% Within Category
42
36
60%
132
136
30%
174
174
34%
Own business
Respondent Count
Expected Count
% Within Category
3
6
4%
110
110
25%
113
113
22%
Unemployed
Respondent Count
Expected Count
% Within Category
0
1
0
44
46
10%
44
44
10%
Total:
Respondent Count
% Within Category
70
100%
441
100%
511
100%
134
Table 4.19: Chi-Square test: relationship between occupation and adoption of e-banking
Value df Asymp. Sig. (2-sided)
Pearson Chi-Square 6.171a 5 .000
Likelihood Ratio 8.447 5 .000
Linear-by-Linear
Association
Nominal Cramer’s V
1.547
0.3102
1
.014
N of Valid Cases 511
a. 4 cells (28.6%) have expected count of less than 5. The minimum expected count is .68.
TESTING HYPOTHESIS H2: THERE IS A SIGNIFICANT DIFFERENCE
BETWEEN USERS AND NON-USERS WITH REGARD TO HOW THEY
PERCEIVE E-BANKING.
To test the perceptions of consumers regarding e-banking, the researcher
used the Mann-Whitney U test to compare the differences between two
independent groups when the dependent variable is either ordinal or interval,
and not normally distributed.
H2a: There is a significant difference between users and non-users with
regard to the perception that e-banking is time-saving and better than
branch banking.
Firstly, the Mann-Whitney U test was conducted to determine whether or not
there is a difference between users and non-users with regard to the
perception that e-banking is time-saving. The observed z-value for this
135
statement is -7.363, with degrees of freedom (total sample size minus 2)
equal to 509. The two-tailed probability of 0.012 is less than 0.05 (Table 4.20)
and therefore, the test is considered to be significant at the 0.05 level. Non-
users do not perceive Internet banking as time-saving, whereas users believe
that Internet banking can be used at anytime and anyplace without having to
queue at the bank, which equates to time-saving. The responses of users
and non-users were totally different. The mean rank for users is 307.01 and
for non-users it is 298.52, which shows that the mean for users is significantly
more than that for non-users. Hence, the hypothesis that there is a significant
difference between the perceptions of users and non-users regarding
whether or not Internet banking saves time is accepted. This result is
consistent with the findings of previous research by Fox (2006), who found
that e-banking is time-saving.
Table 4.20: Comparison of mean values of users and non-users with regard
to their perception that e-banking is time-saving
Decision N Mean Rank Sum of Ranks
E-banking is
time-saving
Yes 70 307.01 21490.70
No 441 298.52 127459.00
Total 511
Mann–Whitney U Value = 856.000 P value= 0.012
Wilcoxon W value = 21490.700 Z value = -7.363
Secondly, the Mann-Whitney U test was also conducted to determine if there
is a difference between users and non-users with regard to their perception
that e-banking is better than branch banking. The observed z-value for this
statement is -11.568, with degrees of freedom (total sample size minus 2)
equal to 509. The two-tailed probability of 0.008 is less than 0.05 (table 4.21)
136
and the test is therefore considered to be significant at the 0.05 level. Non-
users do not perceive Internet banking as being better than branch banking,
unlike users. Thus, the responses of users and non-users were different. The
mean rank for users is 304.11, while for non-users it is 298.52, which shows
that the mean for users is higher than that for non-users, indicating that users
perceive e-banking to be better than branch banking. Hence, the hypothesis
that there is a significant difference between the perceptions of users and
non-users regarding whether or not Internet banking is better than branch
banking is accepted. This finding is similar to observations made by Marhana
(2012), who found that consumers may be motivated to use some e-banking
facilities because they are able to conduct transactions at home and therefore
save on charges.
Table 4.21: Comparison of mean values of users and non-users with regard
to their perception that e-banking is better than branch banking
Decision N Mean Rank Sum of Ranks
Online banking
is better than
branch banking
Yes 70 304.11 21287.7
No 441 287.19 126650.00
Total 511
Mann–Whitney U Value = 1783.000 P value= 0.008
Wilcoxon W value = 21287.700 Z value = -11.568
H2b: There is a significant difference between users and non-users with
regard to their perceptions of the compatibility of e-banking.
Firstly, the Mann-Whitney U test was conducted to determine whether or not
there is a difference between users and non-users with regard to their
perceptions that e-banking suits their lifestyle.
137
The observed z-value for this statement is -12.554, with degrees of freedom
(total sample size minus 2) equal to 509. The two-tailed probability of 0.000 is
less than 0.05 (table 4.22) and the test is therefore considered to be
significant at the 0.05 level. Non-users do not perceive Internet banking to
suit their lifestyle, while users believe that Internet banking can do so. Thus,
the responses of users and non-users were different, as the mean rank for
users is 300.21 and for non-users is 292.00, which shows that the mean of
users is significantly higher than that for non-users. Hence, the hypothesis
that there is a significant difference between the perceptions of users and
non-users regarding whether or not Internet banking suits their lifestyle is
accepted. This result is consistent with the observations of Bradley and
Stewart (2003:1089), who found that the perceived compatibility of Internet
banking is a key driver in the adoption of Internet banking.
Table 4.22: Comparison of mean values of users and non-users with regard
to their perceptions of whether or not e-banking suits their lifestyle
Decision N Mean Rank Sum of Ranks
E-banking suits
my lifestyle
Yes 70 300.21 21014.70
No 441 292.00 126694.00
Total 511
Mann–Whitney U Value = 1681.000 P value= 0.000
Wilcoxon W value = 21014.700 Z value = -12.554
Secondly, the Mann-Whitney U test was conducted to determine whether or
not there is a difference between users and non-users with regard to their
perception that e-banking is convenient. The observed z-value for this
statement is -10.041, with degrees of freedom (total sample size minus 2)
138
equal to 509. The two-tailed probability of 0.001 is less than 0.05 (table 4.23),
and the test is therefore considered to be significant at the 0.05 level, which
means that the hypothesis that there is a difference between users and non-
users with regard to their perception that e-banking is convenient is accepted.
Thus, the responses of users and non-users were totally different. The mean
rank for users is 309.00 and for non-users is 302.52, which shows that the
mean for users is significantly higher than that for non-users, and that users
perceived e-banking to be convenient, while non-users did not.
These results are similar to previous research, which found that the
convenience of online banking is helping people gain greater control of their
finances and contributing to changing patterns in terms of cash withdrawal
and day-to-day money management (Beer, 2006).
Table 4.23: Comparison of mean values of users and non-users with regard
to their perception that e-banking is convenient
Decision N Mean Rank Sum of Ranks
E-banking is
convenient
Yes 70 309.00 21630.00
No 441 302.60 127950.50
Total 511
Mann –Whitney U Value = 1380.000 P value= 0.001
Wilcoxon W value = 21630.000 Z value = -10.041
H2c: There is a significant difference between users and non-users with
regard to their perceptions of the complexity of e-banking.
The Mann-Whitney U test was conducted to determine whether or not there is
a difference between users and non-users with regard to their perception that
139
e-banking is very easy to use. The observed z-value for this statement is -
13.040, with degrees of freedom (total sample size minus 2) equal to 509.
The two-tailed probability of 0.000 is less than 0.05 (table 4.24) and therefore,
the test is considered to be significant at the 0.05 level. With P<0.05, the
hypothesis that there is a difference between users and non-users with
regard to the perception that e-banking is very easy to use is accepted. The
responses of users and non-users were totally different - the mean rank for
users is 322.53 and for non-users is 315.60, which shows that the mean for
users is higher than that for non-users. More users than non-users perceived
Internet banking to be very easy to use. This result is similar to research
conducted by Cooper (1997), who found that ease of use of an innovative
product or service is one of the three most important characteristics for
adoption from the customer’s perspective, and is also similar to research by
Mohd-Suki (2010), who stated that modern-day consumers will find Internet
banking easy to use because they tend to be more educated and to have
sufficient understanding of computers and the Internet.
Table 4.24: Comparison of mean values of users and non-users with regard
to their perception that e-banking is very easy to use
Decision N Mean Rank Sum of Ranks
E-banking is
very easy to
use
Yes 70 322.53 22577.10
No 441 315.60 128950.50
Total 511
Mann–Whitney U Value = 2380.500 P value= 0.000
Wilcoxon W value = 22577.100 Z value = -13.040
140
H2d: There is a significant difference between users and non-users with
regard to the perceived cost of e-banking.
Firstly, the Mann-Whitney U test was conducted to determine whether or not
there is a difference between users and non-users with regard to their
perception that the use of the Internet is very cheap. The observed z-value
for this statement is -12.363, with degrees of freedom (total sample size
minus 2) equal to 509. The two-tailed probability of 0.000 is less than 0.05
(table 4.25), and therefore, the test is considered to be significant at the 0.05
level. With P<0.05, the hypothesis that there is a difference between users
and non-users with regard to the perception that the use of the Internet is
very cheap is accepted. The responses of users and non-users were totally
different - the mean rank for users is 302.53 and for non-users is 285.77,
which shows that the mean for users is higher than that for non-users. Thus,
users perceived the use of Internet to be very cheap, while non-users did not.
This result is similar to research conducted by Hills (2004), who observed
that, over time, Internet costs were going down and would be very cheap in
the future, thus encouraging the adoption of e-banking.
Table 4.25: Comparison of mean values of users and non-users with regard
to the perception that the use of the Internet is very cheap
Decision N Mean Rank Sum of Ranks
Use of the
Internet is very
cheap
Yes 70 302.01 21140.7
No 441 285.77 125454.00
Total 511
Mann–Whitney U Value = 1856.000 P value= 0.000
Wilcoxon W value = 21140.700 Z value = -12.363
141
Secondly, the Mann-Whitney U test was conducted to determine whether or
not there is a difference between users and non-users with regard to their
perception that e-banking is very cheap. The observed z-value for this
statement is -11.049, with degrees of freedom (total sample size minus 2)
equal to 509. The two-tailed probability of 0.000 (table 4.26) is less than 0.05
and therefore, the test is considered to be significant at the 0.05 level. Users
perceived that Internet banking service fees were very cheap while non-users
did not, since the mean for users is 307.51 and is higher than that for non-
users, which is 287.40. Hence, the hypothesis that there is a significant
difference between users and non-users with regard to the perception of
Internet banking services as being cheap. This result is similar to
observations by Asghar (2012:6), who reported that 63% of respondents in a
sample found Internet banking to be cheap. 57% agreed that there were no
hidden charges for online banking and that all the rates and charges were
clearly and honestly communicated to users.
Table 4.26: Comparison of mean values of users and non-users with regard
to their perception that e-banking is very cheap
Decision N Mean Rank Sum of Ranks
E-banking is
very cheap
Yes 70 307.51 21525.70
No 441 287.40 126743.40
Total 511
Mann–Whitney U Value = 2180.000 P value= 0.000
Wilcoxon W value = 21525.70 Z value = -11.049
142
H2e: There is a significant difference between users and non-users with
regard to their perceptions of the risk of e-banking.
Firstly, the Mann-Whitney U test was conducted to determine whether or not
there is a difference between users and non-users regarding their
perceptions of the safety of branch and Internet banking. The observed z-
value for this statement is -1.307, with degrees of freedom (total sample size
minus 2) equal to 509. The two-tailed probability of 0.002 (table 4.27) is less
than 0.05, and therefore the test is considered to be significant at the 0.05
level. The hypothesis that there is a difference between users and non-users
regarding the perception that branch banking is safer than Internet banking is
therefore accepted. From the means value, one can also conclude that non-
users perceived branch banking services to be safer than Internet banking
services, since the mean for non-users is 92.15, which is higher than that for
users, which is 24.31.
These findings are in line with previous research by Zhao et al. (2008), who
found that customers perceived e-banking services to be more risky than
conventional banking.
Table 4.27: Comparison of mean values of users and non-users with regard
to their perceptions of the safety of branch and Internet banking.
Decision N Mean Rank Sum of Ranks
Branch banking
is safer than
online banking
Yes 70 24.31 1701.70
No 441 92.15 40638.15.00
Total 511
Mann–Whitney U Value =128.000 P value= 0.002
Wilcoxon W value = 1701.700 Z value = -1.307
143
Secondly, the Mann-Whitney U test was conducted to determine whether or
not there are differences between users and non-users with regard to the
perception that e-banking is very safe. The observed z-value for this
statement is 1.317, with degrees of freedom (total sample size minus 2) equal
to 509. The two-tailed probability of P=0.102 (table 4.28) is less than 0.05,
and therefore the test is considered to be significant at the 0.05 level. The
hypothesis that there is a difference between users and non-users with
regard to their perception that e-banking is very safe is rejected, since
P>0.05. When the hypothesis is rejected, one does not have to look at the
means value, because both users and non-users have the same perceptions
regarding the safety of e-banking. Previous research conducted on the safety
of e-banking found that due to its technical nature and self-service features,
the functional risk is found to be higher among the developing nations, with
high levels of illiteracy and where perceived operating difficulty and chances
of incomplete transactions due to Internet speed failure are recognised to be
higher. In this type of environment, customers still do not find it safe to bank
online (Agarwalet al., 2009; Kuismaet al., 2007; Aslam&Sarwar, 2010).
Table 4.28: Comparison of mean values of users and non-users with regard
to their perception that e-banking is very safe
Decision N Mean Rank Sum of Ranks
E-banking is
very safe
Yes 70 12.14 849.80
No 441 17.15 7563.15
Total 511
Mann –Whitney U Value = 78.000 P value= 0.102
Wilcoxon W value = 849.80 Z value = 1.317
144
Testing Hypothesis H3: There is a significant difference between users
and non-users with regard to social influences on their decision to
adopt e-banking
Firstly, the Mann-Whitney U test was conducted to determine whether or not
there is a difference between users and non-users regarding the perception
that their decision to adopt e-banking is influenced by the family. The
observed z-value for this statement is -10.254, with degrees of freedom (total
sample size minus 2) equal to 509. The two-tailed probability of P=0.000
(table 4.29) is less than 0.05, and therefore the test is considered to be
significant at the 0.05 level. The hypothesis that there is a difference between
users and non-users regarding their perception that family influences their
decision to adopt Internet banking is accepted, since P<0.05. The mean for
users is 328.55, which is higher than that for non-users, which is 276.23.
This result is similar to the observation made by Aslam (2011), who also
found that family influences the decision to adopt e-banking.
Table 4.29: Comparison of mean values of users and non-users with regard
to their perception that the decision to adopt e-banking is influenced by the
family
Decision N Mean Rank Sum of Ranks
Decision is
influenced by
family
Yes 70 328.55 22998.50
No 441 276.23 121817.50
Total 511
Mann–Whitney U Value = 6513.500 P value= 0.000
Wilcoxon W value = 22998.500 Z value = -10.254
Secondly, the Mann-Whitney U test was conducted to determine whether or
not there is a difference between users and non-users with regardto their
145
perception that the decision to adopt e-banking is influenced by friends and
colleagues. The observed z-value for this statement is -13.004, with degrees
of freedom (total sample size minus 2) equal to 509. The two-tailed
probability of p=0.000 (table 4.30) is less than 0.05, and therefore the test is
considered to be significant at the 0.05 level. The hypothesis that there is a
significant difference between users and non-users with regard to their
perception that the decision to adopt e-banking is influenced by friends and
colleagues is therefore accepted.
As the p value<0.001, one can say that this test is highly significant. The
means of the two groups is 303.04 for users and 288.22 for non-users
respectively, which shows that users reported being influenced by colleagues
and friends in their decision to adopt e-banking, while non-users did not. This
result is in accordance with research by Cheung (2001), who also asserted
that friends have an influence on the intention to adopt e-banking.
Table 4.30: Comparison of mean values of users and non-users with regard
to their perception that the decision to adopt e-banking is influenced by
friends and colleagues
Decision N Mean Rank Sum of Ranks
Decision
influenced by
friends and
colleagues
Yes 70 303.04 21212.8
No 441 288.22 127103.00
Total 511
Mann–Whitney U Value = 1228.000 P value= 0.000
Wilcoxon W value = 21212.800 Z value = -13.008
146
4.5 Summary
This chapter presented the results of the statistical analyses and established
consumer attitudes towards e-banking. It also identified those factors which
influence the use of e-banking and those factors which hamper its use. These
factors relate to consumer demographic characteristics, consumer
perceptions towards e-banking and social influences.
The chapter also presented the results of the data analysis, thereby profiling
the banking habits and e-banking expectations of respondents. A chi-square
test was used to test the relationship between consumer demographic
characteristics and the adoption of Internet banking, and the phi and
Cramer’s V were also used to show the strength of that relationship. An
independent sample Mann-Whitney U test was used to test differences
between users and non-users in terms of their perceptions of e-banking. This
study confirmed that demographics (age, income, educational level and
occupation) have an impact on the use of e-banking, even if this is to varying
degrees. Most users are middle-aged (between 26-35 years old), have
monthly incomes between 500 000-1000 000fcfa, are well educated
(university level) and are employed (either in the private or public sector).
Most attitudinal factors, including relative advantage, compatibility,
complexity, perceived risk and perceived cost were found to be significant
and to influence the decision to adopt e-banking. However, the analysis of
perceived risk showed that e-banking is seen as being unsafe by both users
and non-users. Social influences were found to have a significant effect on
the adoption of e-banking. On the basis of these findings, conclusions and
recommendations will be made in the next and final chapter.
147
CHAPTER 5 CONCLUSIONS AND RECOMMENDATIONS
5.1 Introduction
In this chapter, the study draws conclusions regarding the research question
and puts forward policy recommendations and suggestions for further
research on e-banking in Cameroon. Theories and advantages of e-banking
have stimulated research on identifying the factors that could influence the
decision to adopt e-banking. There are many factors that can influence the
decision to adopt e-banking, depending on each country and its realities. The
adoption of e-banking is important for developing countries, as discussed in
chapters one and two of this study.
This chapter synthesises the conclusions of the research, relates it to the
underlying theories and gives some recommendations for future research.
5.2 Summary of findings
The objective of this study was to examine the factors that can affect the
adoption of e-banking in Cameroon, with the sub-objectives which were
to examine how demographic characteristics, attitudes and social
influences impact on the customer’s decision to adopt e-banking; to
investigate barriers and challenges to the adoption of e-banking; to
investigate the differences in perceptions regarding e-banking between
users and non-users; and to determine whether or not e-banking offers
more opportunities in comparison with the traditional banking system
used in Cameroon.
Managers mentioned some difficulties encountered in the adoption of e-
banking by banks. Cameroonian banking staff seemed to be very resistant to
change. They wanted to stick to the traditional way of banking because they
148
did not want to learn new ways of doing things. Managers also mentioned the
lack of knowledge and awareness among banking staff. Despite these
shortcomings, banks and the government also have their own responsibility
of ensuring the availability of a proper telecommunications infrastructure, as
well as e-laws and legislation. Banking staff find e-banking to be
incompatible with the previous way in which they were doing banking. They
also find e-banking to be very complex to use, since they lack IT knowledge.
It was also found that Cameroonian banking staff can fully adopt and
implement technological alternatives to traditional manual procedures if they
find the new process to be easy to use and to help them accomplish their
work tasks effectively.
With regard to the customer perspective, this study identified some factors
that are more influential than others in terms of e-banking adoption in the
Cameroonian banking market. The empirical results showed that relative
advantage, compatibility, complexity, perceived cost, perceived ease of use
and IT knowledge all have significant effects on the behavioural intention to
use online banking. Bank users found e-banking to be time-saving,
convenient, better than branch banking, cheaper than traditional banking,
easy to use and to suit their lifestyles.
Perceived risk and security were found to have a negative impact on e-
banking adoption. Among the demographic variables, level of education,
occupation, age, gender and income level were found to have a significant
influence in this regard. Users in Cameroon were found to be influenced in
their decision to adopt e-banking by family members, friends and colleagues.
Du (2002) also found that social influences impact on e-banking adoption.
An understanding of the factors identified in this study allows bank managers
to direct efforts and resources in the most effective and efficient way, in order
149
to increase bank business in the long run and to encourage bank customers
to adopt e-banking. In general, if the bank management has greater
knowledge about the factors affecting their customers’ adoption of e-banking,
then they have a greater ability to develop appropriate strategies, thereby
increasing the e-banking adoption rate. These findings were consistent with
those of other researchers such as Yuan et al, 2010 and Asghar, 2012, who
found that demographic characteristics (age, educational level, income,
occupation and gender) have an impact on the decision to adopt e-banking.
Others (Gerrard and Cunningham, 2007; Asghar, 2012; Marhana et al, 2012;
Lee et al, 2011) found that relative advantage, compatibility, complexity,
perceived cost and perceived risk have an impact on the adoption of e-
banking. In Cameroon, this study found perceived risk to have a negative
impact on the decision to adopt e-banking.
This research studied e-banking adoption based on theories such as the
Technology Acceptance Model (TAM), the Theory of Reasoned Action (TRA),
the Theory of Planned Behaviour (TPB) and the Innovative Diffusion Theory.
E-banking adoption has become a major area of focus among researchers
and bank managers due to its strong impact on business performance, lower
costs, customer satisfaction, customer loyalty and profitability.
According to the Theory of Reasoned Action (Fishbein and Ajzen, 1975), an
individual’s intention to adopt an innovation is influenced by his intention to
perform the behaviour. If a person intends to perform a behaviour then it is
likely that he or she will do it. This study is based on the behaviour, intention
to perform the behaviour, attitude and subjective norm. This theory is relevant
to this study in that the attitudes of bank users towards e-banking was
studied, and it was found that customer attitudes impact on the decision to
adopt e-banking.
150
The Theory of Planned Behaviour developed by Ajzen (1985) is an attitude-
intention-behaviour model, which posits that an individual’s behaviour is
determined by perceived behaviour control intention. Attitude, subjective
norms and perceived behaviour control, in turn, determine intention. This
second theory is relevant to this study because the intention to adopt the new
technology is related to the perception that people have of that new
technology.
The Technology Acceptance Model was developed by Davis (1989). This
theory adapts the Theory of Reasoned Action model, in order to model users’
acceptance of information technology. It aims to explain what determines
computer acceptance so as to explain user behaviour across a wide range of
end-users. This theory is based on perceived ease of use and perceived
usefulness. It was found in this study that banking staff and customers can
easily adopt e-banking if they perceive it to be easy to use and useful. From
the customers’ perspective, it was found that they could better adopt e-
banking if they perceived it to be easy to use and useful, as with the
customers who were already using it.
The fourth theory is that developed by Rogers (1983), namely the Innovative
Diffusion Theory, which is based on three main factors: relative advantage,
compatibility and complexity. However, as seen in Chapter 2 of this study,
these factors cannot be studied without considering factors which are linked
to them, such as perceived cost, perceived risk, demographic characteristics,
and social influences.
This study found evidence of the innovative diffusion theory, which asserts
that the main factors impacting on e-banking adoption are relative advantage,
compatibility and complexity, which were all found to have an impact on the
decision to adopt e-banking in Cameroon. Furthermore, factors such as
perceived cost, social influence and demographic characteristics were also
151
found to have an impact on the decision to adopt e-banking in the country.
Among all these factors, it was only perceived risk which was found to have a
negative impact on e-banking adoption in the country.
In summary, all the objectives of this study were achieved. The factors
influencing the adoption of e-banking in Cameroon were identified. These
were demographic factors such as age, income, educational level and
occupation. Psychological factors such as perceptions of relative advantage,
compatibility, complexity and perceived cost were also identified. Perceived
risk was found to have a negative impact on e-banking adoption. A measure
of the relationship between these factors and the adoption of e-banking was
determined. Negative perceptions and attitudes influence the decision-
making process, resulting in negative consumer behaviour outcomes. Social
influences, including the opinions of friends, parents and colleagues, were
found to have an influence on e-banking adoption. With regard to the
research objectives that identified the factors discouraging customers from
using e-banking, lack of trust, lack of information, lack of knowledge and
perceived risk by non-users were found to be barriers to the adoption of e-
banking. Challenges and barriers with regard to e-banking adoption also
included resistance to change by bank employees, lack of knowledge,
absence of e-laws and legislation for e-banking, absence of a proper
telecommunications infrastructure and shortage of IT training. This study is
especially valuable for the Cameroonian banking industry, as the findings
provide significant insights for banks interested in implementing e-banking
strategies.
5.3 Recommendations
The government should provide some free basic computer training, in order
to educate people about computers and the Internet. It should also improve
public access to the Internet by expanding the available bandwidth. It should
152
also enhance the quality of telecommunications in the country and facilitate
access to ICT tools. When people have more access to and knowledge about
the Internet, they will use the services that the Internet can provide, such as
online shopping and banking, more widely. These incentives should increase
the probability that bank customers will adopt e-banking services. Banks
should provide free computer courses on how to use e-banking. As the
educational level increases, people who have attended these courses should
gain more knowledge and skills in this area, and will eventually perceive e-
banking to be more user-friendly. Bank officers need to inform consumers
regarding how the security features have been enhanced to ensure that they
will feel safe using e-banking. Word-of-mouth and communication directly
from the marketer to potential adopters will aid the diffusion process. Banks
also try to increase the number of ATM’s not only in the bank branches and
make sure they are working 24h/7days. Theory suggests that product
attributes help this process, and e-banking should therefore provide banking
services that are compatible with customers’ banking norms and lifestyle.
Thus, banks in Cameroon can use the findings of this study to improve the
promotion of their banking services.
Although most banks offer e-banking services, not as many people as they
would hope are actually using the system. Banks could therefore launch
campaigns to raise awareness among people. These campaigns could be
implemented in universities (since most young adults are university students),
as well as in the form of road shows. They could be used mainly to educate
people about the relative advantage of using the system, as well as to
demonstrate how to cope with security and privacy issues. Campaigns could
also be used to boost confidence among those with low self-efficacy through
demonstrations at bank branches using a one-on-one consultancy system.
Banks should also make ATM’s available in rural areas and even in towns
where there are no branches. They could also penetrate new markets
through the use of company Internet sites, as people may be encouraged to
153
open bank accounts in order to utilise Internet banking facilities.
Furthermore, they could visit companies and provide free training on the use
of computers, the Internet and, more importantly, e-banking.
Finally, banks could also include extra features on their websites to make the
experience more memorable and fun. A plain website may be appealing to an
older audience, but not to young adults.
5.4 Limitation of the research and areas for future research
The study was limited to Cameroon especially in the two main cities of the
country know as Yaoundé and Douala. It may be possible to conduct the
same study in another country in the sub-region (CEMAC), in order to
compare the results and identify common organisational, structural and
strategic factors, as well as factors that contribute to differences in the
adoption of e-banking from one country to another .
The study was also limited only to bank staff and individual customer but for
future research it could also be extended to corporate customers. A
comparison can then be made between individual and corporate customers in
terms of the factors influencing their adoption decisions, criteria for selecting
an e-banking service, and the types of products and services that are
perceived to be useful.
Another area of future research could be to conduct a comparative study
between e-banking adoption in Cameroon and a developed country.
154
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Appendix.A. Questionnaire for the interview of managers
QUESTIONNAIRE FOR INTERVEW OF MANAGERS (RESEARCH)
This questionnaire seeks to explain and understand the evolution of e-
business in the banking system in Cameroon.
To answer the questions, please fill the blank space where the question is
opened and just tick the yes column where the question is closed.
These answers will be anonymous if you prefer.
THANK YOU FOR YOUR CONTRIBUTION.
Number
Of
Questions
QUESTIONS FOR GENERAL
INFORMATION
ANSWERS
1 Full name of the company
2 Head quarter location
3 Type of company
4 Year of establishment
5 Number of branches
6 Number of employees
7 Turnover in the last year
8 Target customers
9 Part of the financial market in
Cameroon
10 Most significant geographic
market
186
These questions will be answered during the interview with the different
managers and directors in each bank (the manager of the branch, the
informatics director, the marketing director).
1. Sex Male [1]
Female [2]
2. Age 25-40 [1]
41-50 [2]
51-more [3]
3. Educational level Primary [1]
Secondary [2]
High school [3]
Undergraduate [4]
Postgraduate [5]
4. Position at work Director [1]
Manager [2]
Non- Manager [3]
5. Do you use e- banking? Yes [1]
No [2]
187
6. How long have you been using e-banking? One year [1]
2-5 years [2]
5-10 years [3]
10 or more [4]
7. Why did you implement it? Cost reduction [1]
Time saving [2]
Enhance the quality of service [3]
More competitive [4]
Follow trends [5]
8. Which e-banking services do you offer? ATM’s [1]
Phone banking [2]
Internet banking [3]
Electronic fund transfer [4]
SMS banking [5]
9. Which one is the most used? ATM’s [1]
Phone banking [2]
Internet banking [3]
Electronic fund transfer [4]
SMS banking [5]
188
10. Which one is less expensive for the bank? ATM’s [1]
Phone banking [2]
Internet banking [3]
Electronic fund transfer [4]
SMS banking [5]
11. Which one is less expensive for customers? ATM’s [1]
Phone banking [2]
Internet banking [3]
Electronic fund transfer [4]
SMS banking [5]
12. How many ATM’s do you have in the country? 1-5 [1]
5-10 [2]
10-15 [3]
16 or more [4]
13. Do they work 24/7 Yes [1]
No [2]
14. Better performance of banks since the implementation of e-banking
Strongly agree [1]
Agree [2]
Neither [3]
189
Disagree [4]
Strongly disagree [5]
15. E-banking reduces costs
trongly agree [1]
Agree [2]
Neither [3]
Disagree [4]
Strongly disagree [5]
16. E-banking is more convenient
Strongly agree [1]
Agree [2]
Neither [3]
Disagree [4]
Strongly disagree [5]
17. E-banking income is far higher than its costs
Strongly agree [1]
Agree [2]
Neither [3]
Disagree [4]
Strongly disagree [5]
18. E-banking is very safe
Strongly agree [1]
Agree [2]
190
Neither [3]
Disagree [4]
Strongly disagree [5]
19. E-banking attracts more customers
Strongly agree [1]
Agree [2]
Neither [3]
Disagree [4]
Strongly disagree [5]
20. How long does it take to transfer money from one bank to another with e-
banking?
1 day [1]
2-3 days [2]
4-5 days [3]
More than 5 days [4]
21. Which services do you offer online?
Balance enquiry [1]
Money transfer [2]
Inter account transfer [3]
Bill payment [4]
Other (specify)
191
_______________________________________________________________
______________________________________________________
22. Does e-banking have all the branch banking operations?
Yes [1]
No [2]
23. What are the barriers and challenges with regard to e-banking
implementation?
Cost [1]
Lack of IT knowledge and awareness [2]
Security [3]
Lack of effective leadership [4]
Resistance to change [5]
Lack of strategic plan [6]
Lack of e-laws and legislation [7]
24. Who is responsible for e-banking legislation?
Government [1]
BEAC [2]
CONAC [3]
25. Is this legislation favourable for e-banking adoption?
Yes [1]
No [2]
192
26. How do you attract customers through e-banking?
Advertisements [1]
Promotion [2]
Reduction of costs [3]
Introduction of new products [4]
27. What is the ICT level of your employees?
High [1]
Average [2]
Weak [3]
28. How do you manage to upgrade their ICT level?
Workshop [1]
Finance manager formation [2]
Others (specify)
_______________________________________________________________
____________________
193
QUESTIONNAIRE FOR CUSTOMERS
My name is Jacques Herve Nguetsop Talla and I am conducting research for
my M Com degree in Business Management at the University of South Africa.
The title of my research project is An empirical study of e-banking in
Cameroon. In order to collect representative data I would like you to fill this
questionnaire which will contribute to the enhancement of the e-banking
quality and services in Cameroon. I need only 15 minutes of your time to
complete this questionnaire. The information provided will be treated
confidentially and your co-operation will be highly appreciated. The aim of this
research project is to improve the e-banking service to Cameroonian
customers.
Full name: Jacques Herve Nguetsop Talla
Signed: _________ DATE
194
To answer the questions, please tick the answers which seem to be close to
what you think is correct about the question or assertion.
These answers will be anonymous.
THANK YOU FOR YOUR CONTRIBUTION.
1. Age 18-25 [1] 25-35 [2] 35-50 [3] 50-more [4]
2. Gender Male [1] Female [2]
3. Income 0 to 100 000 fcfa [1]
100 000 – 250 000 [2]
250 000- 500 000 [3]
500 000 – 1000 000 [4]
1000 000 – more [5]
4. Educational level Primary [1]
Secondary [2]
High school [3]
Undergraduate [5]
Master [6]
5. Occupation Student [1]
Worker in public sector [2]
195
Worker in private sector [3]
Owner of business [4]
Unemployed [5]
Other (specify) [88]
6. Do you have a bank account?
Yes [1]
No [2]
7. If yes, what type?
Savings account [1]
Current account [2]
Other (specify) [88] __________________________
8. Do you know how to use a computer?
Yes [1]
No [2]
9. Where did you learn this?
School [1]
At home [2]
In a workshop [3]
196
10. Do you use the Internet?
Yes [1]
No [2]
11. Where do you use it?
At home [1]
In the office [2]
In the internet café [3]
Other (specify) [4]__________________________
12. How often do you use the Internet?
Each day [1]
Once a week [2]
Once a month [3]
Other (specify) [88]
__________________________________________________________
13. What is the quality of the Internet connection in the country?
Good [1]
Average [2]
Bad [3]
14. Do you have a mobile phone?
Yes [1]
No [2]
197
15. Is it easy to have a mobile phone in the country?
Yes [1]
No [2]
16. Have you ever used your phone for the Internet?
Yes [1]
No [2]
17. Do you know what e-banking is?
Yes [1]
No [2]
18. Where did you hear about it?
TV [1]
Internet [2]
Friend [3]
In the bank branch [4]
Other (specify) [88]____________________
19. Which e-banking service do you know?
ATM’s [1]
Phone banking [2]
Internet banking [3]
Electronic Found Transfer [4]
198
SMS banking [5]
Other (specify) [88]________________
20. Do you use e-banking?
Yes [1]
No [2]
21. If yes, which services do you prefer?
ATM’s [1]
Phone banking [2]
Internet banking [3]
Electronic Found Transfer [4]
SMS banking [5]
Other (specify) [88]
22. If no, why not?
Lack of trust [1]
Lack of knowledge [2]
Accessibility [3]
Other (specify) [88]
23. Why do you use e-banking?
Rapidity [1]
Low cost [2]
Efficient [3]
199
24. How often do you use it?
Every day [1]
Once a week [2]
Once month [3]
More than once a week [4]
Other [5]
25. Why did you start using e-banking?
Time saving [1]
Low cost [2]
Security [3]
Efficiency [4]
Compatibility [5]
26. How is the manual bank?
Very efficient [1]
Efficient [2]
Not efficient [3]
27. How satisfied are you about banking services in Cameroon?
Satisfied [1]
Not satisfied [2]
Undecided [3]
200
28. E-banking is better than branch banking
Strongly agree [1]
Agree [2]
Neutral [3]
Disagree [4]
Strongly disagree [5]
29. How do you receive notifications after each transaction?
Via SMS [1]
In your mail box [2]
At the physical branch [3]
Other (specify) [88]
30. Do the e-banking services meet your expectations?
Yes [1]
No [2]
31. E-banking allows you to better manage your finances
Strongly agree [1]
Agree [2]
Neutral [3]
Disagree [4]
Strongly disagree [5]
201
32. E-banking enhances the relationship with the bank
Strongly agree [1]
Agree [2]
Neutral [3]
Disagree [4]
Strongly disagree [5]
33. E-banking is time-saving
Strongly agree [1]
Agree [2]
Neutral [3]
Disagree [4]
Strongly disagree [5]
34. E-banking is better than branch banking
Strongly agree [1]
Agree [2]
Neutral [3]
Disagree [4]
Strongly disagree [5]
35. Use of the Internet for banking is very cheap
Strongly agree [1]
Agree [2]
Neutral [3]
202
Disagree [4]
Strongly disagree [5]
36. E-banking suits my lifestyle
Strongly agree [1]
Agree [2]
Neutral [3]
Disagree [4]
Strongly disagree [5]
37. E-banking makes banking more convenient
Strongly agree [1]
Agree [2]
Neutral [3]
Disagree [4]
Strongly disagree [5]
38. It is very easy to use e-banking
Strongly agree [1]
Agree [2]
Neutral [3]
Disagree [4]
Strongly disagree [5]
39. Internet banking is very easy to use
Strongly agree [1]
Agree [2]
Neutral [3]
203
Disagree [4]
Strongly disagree [5]
40. E-banking is very cheap
Strongly agree [1]
Agree [2]
Neutral [3]
Disagree [4]
Strongly disagree [5]
41. Having your own Internet is very expensive
Strongly agree [1]
Agree [2]
Neutral [3]
Disagree [4]
Strongly disagree [5]
42. Banking in the branch is safer than via the Internet
Strongly agree [1]
Agree [2]
Neutral [3]
Disagree [4]
Strongly disagree [5]
204
43. E-banking is very safe
Strongly agree [1]
Agree [2]
Neutral [3]
Disagree [4]
Strongly disagree [5]
46. Do you have a debit card?
Yes [1]
No [2]
49. Do you have a credit card?
Yes [1]
No [2]
50. Have you ever bought something online?
Yes [1]
No [2]
51. Do you use your card for shopping?
Yes [1]
No [1]
52. Do you think that e-banking has improved banking services in Cameroon?
Yes [1]
No [2]
205
53. Our decision to adopt e-banking is influenced by colleagues and friends
Strongly agree [1]
Agree [2]
Neutral [3]
Disagree [4]
Strongly disagree [5]
54. Our decision to adopt e-banking is influenced by family
Strongly agree [1]
Agree [2]
Neutral [3]
Disagree [4]
Strongly disagree [5]
55. Do you think that banks should look at the different complaints of their
customers to enhance service quality?
Strongly agree [1]
Agree [2]
Neither [3]
Disagree [4]
Strongly disagree [5]
206
Appendix.B. Bank branches in Cameroon
.
Estreme-nord = Maroua
Nord = Garoua
Adamaoua = Ngaoundere
Est = Bertoua
Sud = Ebolowa
Centre = Yaounde
Littoral = Douala
Sud oust = Bua
Ouest = Bafousam
Nord oust = bamenda
207
Appendix.C. Frequencies from the data collected
E-banking saves time
E-banking save
time
Strongly
Agree
Agree Neither
Agree
nor
Disagree
Disagree Strongly
Disagree
Total
frequency 60 197 172 77 5 511
Percentage 12% 39% 33% 15% 1% 100%
e-banking users
frequency
56 14 0 0 0 70
e-banking users
percentage
80% 20% 0 0 0 100%
e-banking non-
users frequency
4 185 172 77 5 411
e-banking non-
users frequency
1% 42% 38% 17% 2% 100%
E-banking is better than branch banking
E-banking is
better than
branch banking
Strongly
Agree
Agree Neither
Agree
nor
Disagree
Disagree Strongly
Disagree
Total
frequency 48 156 72 77 158 511
Percentage 9% 31% 14% 15% 31% 100%
e-banking users
frequency
19 32 8 10 1 70
e-banking users
percentage
27% 46% 11% 14% 2% 100%
e-banking non- 29 124 64 67 157 441
208
users frequency
e-banking non-
users frequency
7% 28% 15% 14% 36% 100%
E-banking suit your lifestyle
E-banking suits
your lifestyle
Strongly
Agree
Agree Neither
Agree
nor
Disagree
Disagree Strongly
Disagree
Total
Frequency 60 167 79 107 98 511
Percentage 12% 32% 15% 21% 20% 100%
E-banking users
frequency
12 31 14 8 5 70
E-banking users
percentage
18% 44% 20% 11% 7% 100%
E-banking non-
users frequency
48 136 65 99 93 441
E-banking non-
users frequency
11% 30% 16% 22% 21% 100%
E-banking makes banking more convenient
E-banking
makes life
convenient
Strongly
Agree
Agree Neither
Agree nor
Disagree
Disagree Strongly
Disagree
Total
frequency 41 114 218 102 36 511
Percentage 8 22 43 20 7 100%
e-banking users
frequency
11 37 5 8 9 70
e-banking users 16 53 7 11 13 100%
209
percentage
e-banking non-
users frequency
30 77 213 94 27 411
e-banking non-
users frequency
7 17 48 21 7 100%
Is the e-banking service easy to use?
E-banking is
easy to use
Strongly
Agree
Agree Neither
Agree nor
Disagree
Disagree Strongly
Disagree
Total
frequency 42 152 98 132 87 511
Percentage 6 31 36 22 5 100%
e-banking users
frequency
37 26 2 3 2 70
e-banking users
percentage
52 37 3 5 3 100%
e-banking non-
users frequency
5 126 96 129 85 441
e-banking non-
users frequency
1 29 22 29 19 100%
Is Internet use cheap?
Internet use is
cheap
Strongly
Agree
Agree Neither
Agree nor
Disagree
Disagree Strongly
Disagree
Total
frequency 34 131 104 181 61 511
Percentage 7 39 28 14 12 100%
e-banking users
frequency
18 30 4 18 0 70
210
e-banking users
percentage
26 43 20 11 0 100%
e-banking non-
users frequency
16 101 100 163 61 441
e-banking non-
users frequency
4 23 23 36 14 100%
Is e-banking cheap?
e-banking is
cheap
Strongly
Agree
Agree Neither
Agree
nor
Disagree
Disagree Strongly
Disagree
Total
frequency 58 121 79 113 140 511
Percentage 11 24 15 22 27 100%
e-banking users
frequency
12 33 13 8 4 70
e-banking users
percentage
17 47 19 11 6 100%
e-banking non-
users frequency
46 88 66 105 136 441
e-banking non-
users frequency
10 20 15 24 31 100%
211
Friends and colleagues’ influence on the decision to adopt e-banking
Friend and
colleagues
influence the
use of internet
Strongly
Agree
Agree Neither
Agree nor
Disagree
Disagree Strongly
Disagree
Total
Frequency 72 154 89 127 69 511
Percentage 14 36 17 25 8 100%
e-banking users
frequency
23 34 4 6 3 70
e-banking users
percentage
33 49 6 7 5 100%
e-banking non-
users frequency
49 120 85 121 66 441
e-banking non-
users frequency
11 28 19 27 15 100%
Family influence on the decision to adopt e-banking
Family influence
the use of
internet
Strongly
Agree
Agree
Neither
Agree nor
Disagree
Disagree Strongly
Disagree
Total
Frequency 24 164 101 134 88 511
Percentage 13 37 21 20 9 100%
e-banking users
frequency
19 28 9 6 8 70
e-banking users
percentage
28 42 12 7 11 100%
e-banking non-
users frequency
5 136 92 128 80 441
212
e-banking non-
users frequency
1 30 20 30 19 100%
Banking in the branch is safer than via the Internet
Banking in the
branch is safer
than on internet
Strongly
Agree
Agree Neither
Agree
nor
Disagree
Disagree Strongly
Disagree
Total
frequency 121 184 78 81 47 511
Percentage 24 36 15 15 10 100%
e-banking users
frequency
10 20 6 29 5 70
e-banking users
percentage
14 29 09 41 7 100%
e-banking non-
users frequency
111 164 72 52 42 441
e-banking non-
users frequency
25
37 16 12 10 100%
E-banking is very safe
e-banking is
very safe
Strongly
Agree
Agree Neither
Agree nor
Disagree
Disagree Strongly
Disagree
Total
frequency 28 84 104 201 94 511
Percentage 5 16 22 39 18 100%
e-banking users 10 24 12 18 6 70
213
frequency
e-banking users
percentage
14 34 17 26 9 100%
e-banking non-
users frequency
18 60 92 183 88 411
e-banking non-
users frequency
4 14 21 41 20 100%
214
Appendix.D. Request for entry into the area of research: French and
Englishversion
215
216
Appendix.E. Ethical clearance for the research